XingHe Holdings, a Chinese producer of edible oils, has agreed to pay MYR 100 million ($24m) to acquire the assets of Pegagau Aquaculture, a Malaysian vannamei shrimp producer, The Star, a Malaysian newspaper, reports.
The acquisition, which is being handled by XingHe’s acquaculture subsidiary, XW Aquaculture, will involve a combination of internally generated funds and borrowings, according to the newspaper.
As much as MYR 87.5m is being paid for the farm assets, which include cultivation and reservoir ponds, building and structures, plant and machinery equipment, motor vehicles and livestock and consumables. The 97.9 hectares of land being acquired in Wakuba, in the state of Sabah, is reportedly valued at MYR 12.5m.
XingHe said the acquisition is to be completed in six months.
The Chinese company, in June, acquired 3.12m shares, or a 52% stake, in new Malaysian processing firm Sea Tuna Industry at a cost of $780,000.