Kuantan Flour Mill keen to expand starch, premix flour business into China

PETALING JAYA: Financially troubled Kuantan Flour Mill Bhd (KFM) is looking to expand its starch and premix flour business into China.

The company told Bursa Malaysia that it had on Feb 9 entered into a memorandum of understanding (MoU) with Shou Guang Chang Tai Economic And Trade Co Ltd (SGCT) for a proposed collaboration through either a business collaboration arrangement between both parties or a direct acquisition of a majority equity interest in SGCT by KFM.

Based in Shouguang City, Shandong province of China, SGCT is principally involves in the trading and retailing of corn, tapioca and food related products. Since its establishment, SGCT has established a stable import and export business with trading partners within China and Southeast Asian countries.

The MoU will be terminated upon execution of the definitive agreement or in the event where both parties are unable to execute the definitive agreement within a period of six months from the MoU date.

Separately, KFM announced that it had on Feb 9 submitted an application to Bursa Securities for the withdrawal of its proposed regularisation plan, which was submitted on Sept 29, 2017. It also requested for an extension of time of another nine months till Nov 7, 2018 to resubmit a revised proposed regularisation plan.

KFM’s share price was unchanged at 13 sen on some 24,000 shares done.