KeyWest

Testa Holdings Ltd of China will inject its edible oil business into Key West Global Telecommunications Bhd in a RM210mil corporate exercise.

Upon completion of the RTO, Key West will be removed from the current GN 3 status.

Under the RTO, Testa will inject Supreme Global Group Ltd, who owns Henan XingHe Oil and Fat Co. Ltd that ranks among the top six edible oils companies in China into Key West.

After the corporate exercise, Key West will change its name to XingHe Holdings Bhd (XingHe).

Through Henan XingHe, Supreme Global's core business is the production, blending and marketing of edible vegetable oil and peanut protein cake. The exercise would enable Key West to venture into edible vegetable oil industry in China and provide the company with a new source of income.

Supreme Global owns 91.15% of Henan XingHe through its unit, Anyang HeRun Oil Technical Co. Ltd. The remaining 8.85% stake in Henan XingHe is owned by the Chinese Government-linked Henan Finance Bureau through its unit, Henan Agric Synthesis Exploitation Co.

For the financial year ended Dec 31, 2012, Henan XingHe registered a revenue and profit after tax of 1.49bil renminbi (RM728.32mil) and 134.66mil renminbi (RM65.78mil) respectively.