In mid-April, Lay Hong Bhd, a major poultry and egg producer, has entered into a sale and purchase agreement with NH Foods Ltd. (NH Foods) Japan, to acquire the remaining 51% stake in NHF Manufacturing (Malaysia) for a price of RM15.3 million (US$3.47 million).
NHF Manufacturing was formed in 2016 with Lay Hong having a 49% stake in the joint-venture. The new acquisition translates to a 100% acquisition of the JV. According to Lay Hong, the JV has not been able to ‘fully realise its intention and plans’ due to the pandemic as its manufacturing plant in Selangor Halal Hub commenced operations only in 2019, just before the pandemic outbreak.
As NH Foods will like to exit from the JV, Lay Hong on the other hand thinks that the Selangor plant will give it a strong boost to expand its export business.
The acquisition is also part of Lay Hong’ expansion plans to further venture into precooked downstream chicken products and also to provide a wider range of products and services to complement its existing businesses for both domestic as well as export markets.