Fraser & Neave to buy leasehold land from MSM Perlis for $32.2m

The company will explore upstream insourcing of milk.

F&N AgriValley, a subsidiary of Fraser & Neave Holdings (F&NHB), has entered a purchase agreement with MSM Malaysia, a subsidiary of MSM Perlis, to buy 4,454 ha of leasehold land in Ladang, Chuping for $32.2m, the company announced.

Also read: Fraser & Neave profits jumped 81% to $73.82m in H1 2019

Following the acquisition, F&N AgriValley plans to explore how upstream insourcing of fresh milk can support the existing downstream production.

“This investment reflects the potential we see in filling the gap of local dairy sector, and the huge opportunity to increase fresh milk consumption in Malaysia in our journey towards a healthier society,” says Lim Yew Hoe, F&NHB Chief Executive Officer.