Teo Seng wins Korean deal to distribute pet food in 3 countries

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KUALA LUMPUR (Oct 15): Teo Seng Capital Bhd (Teo Seng) has secured an exclusive marketing and distribution agreement (DA) from South Korea’s The-O Corporation (THEO) to be the distributor of pet food products in Malaysia, Singapore and Brunei.

According to an announcement on Bursa Malaysia, Teo Seng said its wholly-owned subsidiary, Ritma Prestasi Sdn Bhd (Ritma), will be the exclusive distributor of THEO’s “Natural Core” and Finiki brands of pet food products.

“The DA will expand Ritma’s customer base and product lines, The distributorship will enhance Ritma’s corporate image and further strengthen Ritma’s position in the trade of veterinary products,” said Teo Seng.

Teo Seng added the DA will remain in force for three years. The agreement will be automatically renewed for a further 12 months, unless either party decides to terminate the agreement during the term.

Even if the agreement is terminated, Ritma will still have the right to sell the remaining stock on hand, for a period of six months.

Besides that, the agreement also stipulated that Ritma will have priority if THEO launches any new brands in the same three South East Asian countries.

Teo Seng said the DA “is expected to positively contribute to the future earnings of Teo Seng Group."

Teo Seng is primarily in the poultry farming business, and manufactures and markets paper egg trays and animal feed. Ritma, on the other hand, distributes pet food, medicine and other related products.

Teo Seng’s share price closed at RM2.08 today, down 2 sen. This gives it a market capitalisation of RM420 million.