Farm Price

FARM Price Holdings Bhd is acquiring assets and the business operations of two Johor-based companies involved in the grocery and fresh produce trade for a total cash consideration of RM4.5 million.

In a filing with Bursa Malaysia, the company said its wholly owned subsidiary Food Life Sdn Bhd has entered into two agreements on June 18 — a RM3.9 million deal with Hong Yun Vegetables & Fruits Sdn Bhd and a RM600,000 deal with D & D Sinma 8888 Univeg Trading — to acquire specified assets and business operations from both parties.

The proposed acquisition from Hong Yun includes its grocery wholesale and retail business covering vegetables, fruits, seafood, frozen food, and processed produce, along with assets such as vehicles, office equipment, and factory machinery. However, liabilities of the business will not be assumed.

The acquisition from D & D involves specified assets including motor vehicles and machinery, but excludes liabilities. Both agreements are conditional upon the fulfilment of several precedent conditions.

The acquisitions are intended to expand Farm Price’s supply chain with new product offerings such as fruits, frozen food and groceries, while also widening its customer base in the food services sector across Malaysia and Singapore.

The group expects the deals to contribute positively to its future earnings.

Funding for the acquisitions will be fully in cash, sourced via internal funds and shareholders’ advances. There is no issuance of new shares involved.

Barring unforeseen circumstances, the acquisitions are expected to be completed by the third quarter of 2025. — TMR

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