Wilmar International announced that its wholly-owned subsidiary, Yihai Kerry Investments has entered into two conditional joint venture agreements (JVAs) with Singapore Food Industries (SFI) today to supply certain safe and high quality food to the Chinese market (the "Transactions").
SFI is a wholly-owned subsidiary of SATS Ltd., a Singapore company listed on the Mainboard of the Singapore Exchange Securities Trading Limited. Pursuant to the JVAs, SFI and YKI will incorporate an investment holding company ("JV Company") and an operating company ("Operating Company") in the People's Republic of China.
The JV Company and the Operating Company will each have a registered capital of RMB 230 million and RMB 200 million, respectively. SFI will subscribe for 60% and YKI will subscribe for 40% of the registered capital of each of these companies. The incorporation of the JV Company and the Operating Company and the completion of the Transactions will take place subject to the completion of certain conditions precedent as set out in the respective JVAs.
Wilmar's investment into the JV Company and the Operating Company is not expected to have any material impact on the consolidated net tangible assets and earnings per share of Wilmar and its subsidiaries for the current financial year ending 31 December 2016.
