SINGAPORE (April 21): Mainboard-listed Delfi has entered into a joint venture agreement with Japan's Yuraku Confectionery Company to produce, develop, market and sell a range of chocolate snack products in Indonesia.
Delfi will hold a majority 60% share in the joint venture company, named Delfi Yuraku, with Yaraku holding the remaining 40%.
The total initial capital commitment is estimated to be between US$5-7 million ($7-10 million).
Delfi's local distribution arm in Indonesia will be appointed as the exclusive distributor of the products in Indonesia.
"We are very excited about this alliance with Yuraku as it will allow us to extend the breadth of our portfolio of snacking products," says Delfi CEO John Chuang.
"Taking advantage of both companies' strengths, I am convinced that our partnership can create tasty and unique products for the people in not only Indonesia but possibly other Asian countries," says Tomoharu Kawai, President of Yuraku.
According to a press release on Friday, the launch of the joint venture company is subject to the relevant regulatory approvals.
Delfi says the transaction is not expected to have any material impact on its earnings for the financial year ending Dec 31, 2017.
Shares of Delfi closed 1 cent lower at $2.31 on Friday.