SATS and Wilmar International unveiled after Friday trading hours, a 120 million yuan (about S$24.53 million) joint venture (JV) company.

SATS Food Services will hold 60 per cent equity interest, with an indirect subsidiary of Wilmar taking the remaining 40 per cent stake in Langfang JVCo. The registered capital of Langfang JVCo is 120 million yuan.

The JV company is set up for the purpose of building a central kitchen in Langfang, Hebei, China. Its primary business is in food manufacturing, food processing and sale of food products.

The two parties will each inject 30 per cent of their respective subscribed capital within 10 business days after the JV company's bank accounts are opened. The balance 70 per cent will be injected within two years of incorporating the JV company.

SATS and Wilmar intend to draw on internal resources to fund their shares of the JV company investment.

SATS and Wilmar announced, in September 2016, the incorporation of Kunshan OpCo after entering into two JV agreements.

The listed companies have mutually agreed not to proceed with the incorporation of a Shanghai holding company but instead decided to set up the Langfang JVCo.