KUALA LUMPUR: The Royal Pahang Durian Group (RPD) recently signed two shareholders’ agreements with Perbadanan Kemajuan Pertanian Negeri Pahang (PKPP) to facilitate its entry into large scale durian processing and its participation in the legalisation of encroached farming in the district of Raub, Pahang.
RPD said the first agreement relates to the subscription of shares in Ample Fruits Sdn Bhd (AFSB), with Royal Pahang Produce Sdn Bhd (RPP) taking 60 per cent of the equity and PKPP 40 per cent.
Upon subscription of the shares, AFSB will be renamed Royal Pahang Durian Produce – PKPP Sdn Bhd. (RPDP-PKPP).
Under the agreement, RPDP-PKPP will invest about RM40 million to build, own and operate a state of the art durian processing facility with an initial freezing capacity of 3,500 metric tons per-month located in Raub.
The facility, when completed, will be the largest durian processing facility (frozen whole fruit, pulp and paste) in Malaysia.
It will feature the latest cryogenic freezing technology, highly-automated processing lines, dedicated research and development (R&D) capabilities and 7,000 tonnes of storage.
The plant will be in compliance with the latest export protocols and health and food safety hazard control certifications.
Meanwhile, the second agreement relates to the subscription of shares in Ample Harvest Capital Sdn Bhd (AHSB) by Royal Pahang Durian Resources Sdn Bhd (75 per cent) and PKPP (25 per cent).
RDP said AHSB will be renamed Royal Pahang Durian Resources – PKPP Sdn Bhd (RPDR-PKPP) on completion of subscription.
Under this agreement, both parties will participate in the legalisation exercise involving initially no less than 7,000 acres in the district of Raub, which have been affected by encroached farming.
RPDR had in July 2019 been granted the mandate and approval by the Pahang State Government, through the Perbadanan Setiausaha Negeri Pahang (PSK) to undertake and implement its proposal to address the issue of illegal farming in the district of Raub, and to curb further encroachment.
RPDR-PKPP had recently submitted some revision of terms to PSK and in anticipation of PSK’s reply and the parties had recently formalised their shareholder's agreement.
Further detailed announcement will be made upon official reply by PSK.
Under the legalisation scheme, illegal farmers will be required to cease further land encroachment.
They are also required to register for Malaysian Good Agricultural Practice (MyGAP) Certification and comply with environmental regulations, where applicable, said RDP.
In return, they would be allowed to continue cultivating the areas with an agreement to sell their products through the RPD Group.