Goldis Bhd is making its first major private equity investment this year via a foray into the bio-technology, aquaculture sector, with a particular focus on China.
The company on March 20 signed an agreement with EPAQ Sdn Bhd and Fish Protech Malaysia Sdn Bhd to form a new investee company (newco), Protech Yu (Asia).
Goldis will hold 10% equity stake and its wholly owned subsidiary Goldis Yu Sdn Bhd 60%.
EPAQ and Fish Protech Malaysia will hold 25% and 5% respectively in the JV, which would provide support services to local and Asian fish farmers through a land-based aquaculture technique known as Fish Protech Controlled Aquaculture System (FPCAS).
The system covers the production technology, the proprietory equipment, installation, start up services, farm operational and management know-how, fingerlings, fish feed formulae, and post-harvest processing techniques for fish production.
Speaking to reporters after signing the agreement in Kuala Lumpur on March 20,
Goldis chief executive officer Tan Lei Cheng said the company would invest an
initial RM1 million into the newco.
Tan (left)
with Protech Yu (Asia) Sdn Bhd exco Johan Don at the signing ceremony
"The company is in the midst of finalising the location for a hatchery and also details of contracts with some interested fish farmers. We will announce details in due course," she said.
She said the newco would be assigned the rights under the master licence of the FPCAS in Asia.
She said the regional potential of the tie-up for the high-tech land-based fish farming, particularly in China was enormous, as the country was expected to be the most important market for aquaculture in the next few years.
"Our plan is to use Malaysia as an initial base for expansion to the massive markets of China and East Asia," she said.
She said the newco was expected to generate a small but steady stream of income in its first year of operation.