KUALA LUMPUR (April 14): PLS Plantations Bhd said its binding term sheet (BTS) with Landasan Erajaya Sdn Bhd was allowed to lapse after the two companies formed a direct joint-venture.

The BTS lapsed on Thursday (Arpil 13) as PLS Plantations and Landasan Erajaya had formed PLS LESB Sdn Bhd, a direct 51:49 JV partnership to plant durian and cash crops, and undertake other plantation activities, it told The Edge on Friday.

“Hence, the lapse of the BTS will have no impact to the PLS initiatives to undertake agriculture activities in Pahang,” it added. 

PLS said the JV's maiden endeavour is a co-investment project undertaken with Japan’s MYFARM Inc, its unit Millenium Agriculture Technology Sdn Bhd (MAT), and Akar Barat Jaya Sdn Bhd, to invest in 1,000 hectares of durian, agriculture and aquaculture at RM429 million.

The group did not disclose when PLS LESB was formed, but noted that the JV was announced on Jan 16.

According to a bourse filing dated Jan 16 concerning the heads of agreement between PLS, MYFARM, and MAT for the maiden project, PLS LESB was at the time a 51%-owned subsidiary of PLS. The owner of the remaining 49% at the time was not disclosed.

Subsequent relevant filings dated Feb 7 and March 5, concerning PLS’ now 49%-owned PLS LESB, also did not mention that Landasan Erajaya was the majority shareholder of the JV.

Shares in PLS ended one sen or 1.05% lower at 94 sen, giving the group a market capitalisation of RM413.24 million.

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