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Lion Corporation and Wilmar to form JV

WILMAR International Limited's wholly-owned subsidiary, KOG Investments Pte Ltd (KOGI), has entered into a conditional joint venture agreement with Lion Corporation on Friday for the manufacture and sale of methyl ester sulfonate (MES).

In a Singapore Exchange filing, Wilmar said that pursuant to the agreement, KOGI will incorporate an investment holding company (JV company) in Singapore, which, in turn, will incorporate an operating company in Indonesia.

The operating company will acquire the Wilmar group's existing MES manufacturing facilities in Indonesia.

The JV company will also acquire Lion Eco Chemicals Sdn Bhd (Leco), in consideration for the issue of 50 per cent of the enlarged share capital of the JV company at a subscription price equivalent to Leco's fixed asset value.