AEM’s unit and Palm Pro form JV company
10 Jun 2020
AE Multi Industries Sdn Bhd (AEMI), a wholly-owned subsidiary of AE Multi Holdings Bhd (AEM), has entered into a Heads of Agreement with Palm Pro Engineering Sdn Bhd to form a proposed joint venture (JV) business via establishment of a company for the group to diversify into palm oil milling business.
In a filing with Bursa Malaysia today, AEM said the the business of the JV company is to carry out milling and processing of oil palm fresh fruit bunches and trading of crude palm oil and palm kernel, among others.
The company will also undertake the management, operation and administration of the existing palm oil mills located in Malaysia and other countries and to perform all acts, matters and things as may be consistent with, necessary for and incidental to the attainment of any and all of the foregoing objects, it said.
Under the JV company, AEMI will hold 51 percent shares while the remaining 49 percent stake will be held by Palm Pro.
“The proposed JV allows the group to diversify into palm oil milling business, which is expected to provide sustainable income stream, in addition to the group’s current income stream which may be more cyclical in nature,” it added.