JAKARTA. PT Kino Indonesia Tbk (KINO) announced the liquidation of its joint venture with Wah Kong Corporation Sdn. Bhd, PT Kino Pet World Indonesia.
Budi Muljono, Director and Corporate Secretary of KINO, said that the decision to liquidate Kino Pet World had been approved by the company's shareholders. The liquidation, said Muljono, was carried out due to unrealized business plans.
On 13 February 2018, KINO and Wah Kong signed a cooperation agreement to establish a joint venture, which is engaged in the production of pet food. "However, the factory has not yet constructed," said Muljono through a disclosure on the Indonesia Stock Exchange.
Under the agreement, KINO becomes the controlling shareholder in Kino Pet World with a 51% stake. When announcing the establishment of Kino Pet World, KINO's management stated that this step was a business diversification effort carried out by the company to encourage non-organic business growth.
According to data compiled by idnfinancials.com, KINO and Wah Kong have also established another joint venture company, PT Kino Pet World Marketing Indonesia. The two joint ventures were established with an investment of Rp12 billion. (KR/AR)