Food manufacturer OTS Holdings announced that it has entered into a sale and purchase of shares and assignment of loan agreement with Valencier International to dispose of the company’s entire 50% equity interest in its joint venture company (JV Co) Delta Bridge for $500,000.
The JV Co is a directly held, 50% joint venture entity of OTS Holdings, while the other 50% is held by Hogsworld, an unrelated third party. Upon completion of the proposed disposal, the group will no longer hold any equity interest in the JV Co, which is an investment holding company that holds 90% of PT Delta Bridge Foods.
PT Delta Bridge Foods is a non-Halal food manufacturing business in Bulan, Indonesia.
The group said that the JV Co's subsidiary had faced challenges due to unforeseen outbreak of African Swine Fever on the Riau Islands, Indonesia in May 2023. As a result, its Indonesia supplier has halted its pork supplies due to a shortage of raw materials, which resulted in share of losses and impairment charges pertaining to the JV Co recognised by the Group in FY2023. To date, there is no clear timeline for the plant to fully resume operations.
Meanwhile, the group has in Nov 2023 announced that its subsidiary acquired a factory in Malaysia. This disposal will enable the group to focus its resources on its operations in Malaysia and strengthen its cash flows.
See more: OTS Holdings to acquire Malaysian factory and land for RM14.3 mil
See also: Sembcorp signs MOUs with government of Odisha
Shares in OTS closed at 14.3 cents on Dec 26.
