04/04/2012 (The Star) -  Sarawak Oil Palms Bhd (SOPB) has signed a shareholders and subscription agreement with Danum Shipping Sdn Bhd for a proposed joint venture (JV) for palm oil tanker shipping services.

In a filing to Bursa Malaysia yesterday, SOPB said it would take up a 45% stake in the JV company, Micaline Sdn Bhd, with the balance held by Danum, a wholly-owned subsidiary of Shin Yang Shipping Corp Bhd.

SOPB said it would subscribe and pay in cash for 7.65 million shares of RM1 each in Micaline, while Danum took up 9.35 million shares.

SOPB said the proposed JV would enable it to participate as a partner in the regional edible oil shipment business and provide logistical support to its group palm oil business.

Separately, Shin Yang in a filing with Bursa Malaysia said the agreement would pave the way for Danum and SOPB to be strategic business partners. Danum, by combining its technical expertise in shipping operations, and secured shipments of palm oil products from SOPB’s refinery and mills, is confident that the JV will contribute to its long term future earnings. — Bernama