BCL and PCL hold the expertise in the research and development of the system. The former also holds an exclusive, perpetual, worldwide and royalty-free licence to the invention. Equator has access to the Malaysian market with “good customer contacts”.
Under the terms of the JV, Equator, BCL and PCL are to have joint participation in Equator’s wholly owned subsidiary Biosmart Sdn Bhd with a 55%, 35% and 10% equity split respectively. The JV would then have the licence to market the system in Malaysia.
In a statement on June 6, Equator said the JV was aimed at strengthening the company’s “competitive advantage” by diversifying into the organic fertiliser sector to enhance the cost efficiency of Equator’s own production and consumption of organic fertiliser.
“The JV will also enable the group to venture into production and marketing of organic fertiliser to its existing customers as well as expanding into new potential market,” it added.