Dutch Lady plans RM17.5 million purchase of Johor dairy stake
The proposed deal would give Dutch Lady 35% of Jemaluang Dairy Valley, while Kulim’s holding would fall to 30%.
Dutch Lady Milk Industries Bhd (DLMI) plans to pay RM17.5 million for an interest in Jemaluang Dairy Valley Sdn Bhd (JDV), buying shares from Kulim (Malaysia) Bhd to expand its access to locally produced fresh milk.
In a Bursa filing, DLMI said it had entered into a conditional purchase agreement with Kulim and A2 Fresh Holdings Sdn Bhd. The transaction would reduce Kulim’s ownership from 65% to 30%, while A2 Fresh would retain 35%.
DLMI said the investment would help it serve growing fresh milk demand and strengthen its position in Malaysia’s ready-to-drink milk market. The company expects fresh milk to play an increasing role in that market.
According to DLMI, JDV runs a dairy project in Sungai Ambat, Jemaluang, Mersing, with the East Coast Economic Region Development Council. Operations started in 2025. The farm plans to increase its milking herd from 1,000 cows to 2,000 by 2030, and JDV intends to build a pasteurisation facility with annual capacity of between 16 million and 20 million litres by 2027.
DLMI will use internal funds for the purchase and provide a corporate guarantee of RM24 million for capital expenditure financing extended to JDV by MBSB Bank Bhd.
A separate conditional joint venture agreement sets out governance arrangements after completion, including board representation, shareholder approval requirements and share-transfer restrictions. The Johor government’s State Secretary Incorporated will hold a redeemable preference share carrying special rights.
The purchase remains subject to approvals from the project management committee, the ECER council, the Johor government and MBSB Bank. DLMI must also sign agreements covering JDV’s raw milk supply to it and its distribution of JDV’s finished milk products. Conditions must be met or waived within 90 days, with an automatic 30-day extension if needed.
