RDL acted as legal counsel to GENP in its plans to diversify into the vegetable seeds business through a strategic joint venture with a Chinese company.
The collaboration will involve setting up 2 joint venture (JV) companies, of which 60% will be held by GENP’ indirect wholly-owned unit, AGCT Vegetable AgVentures Sdn Bhd, with the balance 40% being held by China-based Shouguang Vegetable Science and Technology Sdn Bhd (SVST), an indirect wholly-owned subsidiary of CSV. The JV companies will develop a 70-acre plot of land in Kulai, Johor, into a Centre for Excellence for tropical vegetable crops, and undertake a vegetable seeding programme, aimed at advancing sustainable economic growth and strengthening food security for the nation.
RDL acted as legal counsel to GENP in preparing, advising and finalising the joint venture and subscription agreements (“JVAs”).
Under the JVAs, the parties will establish two joint venture companies with a combined estimated paid-up capital of RM525 million:
- JV Technology Company, which will spearhead and manage the joint vegetable seed breeding programme; and
- JV Operating Company, which will oversee and implement the JV development project, including the Centre of Excellence.
The RDL transaction team was led by Partner, Tai Chu Wei, supported by Associates, Devraj Nagarajan and Payne Yap Pat Jien and Pupil, Brittany Yew Jia Qi.
Announcement by GENP:
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=161011&name=EA_GA_ATTACHMENTS
Media coverage: