KUALA LUMPUR: Dutch Lady Milk Industries Bhd has agreed to buy a 35 per cent stake in Johor-based integrated dairy business Jemaluang Dairy Valley Sdn Bhd from Kulim (Malaysia) Bhd.
The completion of the proposed acquisition remains subject to conditions under the share sale agreement, including third-party approvals.
Upon completion, Dutch Lady Malaysia will join Kulim, a wholly owned subsidiary of Johor Corporation (JCorp), and A2 Fresh Holdings Sdn Bhd (A2F), a subsidiary of Rhone Ma Holdings Bhd, as shareholders in Jemaluang Dairy.
Dutch Lady Malaysia said the investment will strengthen its presence in the domestic fresh milk segment as the country seeks to expand local dairy production and improve food security.
Managing director Veronika Utami said the company saw opportunities to build on its position in the Malaysian market as consumer preferences continued to evolve.
“We look forward to working with Kulim and A2F to support Jemaluang Dairy’s continued development, while exploring how our market knowledge and consumer insights can help us respond to changing needs and bring more choices to Malaysian consumers,” she said.
JCorp president and chief executive Datuk Syed Mohamed Syed Ibrahim said the partnership would bring together complementary capabilities across the dairy value chain.
“A competitive dairy industry needs strong local production, industry expertise, reliable operations and market access across its value chain.
“Through Kulim, we have helped lay the foundation at Jemaluang Dairy. This partnership with Dutch Lady Malaysia brings complementary capabilities to unlock its long-term commercial potential,” he said.
Jemaluang Dairy will continue operating under its existing management, with the three shareholders working under agreed governance arrangements to develop the business and explore opportunities in Malaysia’s dairy market.