A deed of novation is an agreement which transfers one party's rights and obligations under a contract to a new third party.
In this case, the rights have been transferred to the State to Kumul Consolidated Holdings, taking up 30 percent interest in Central Dairy Limited.
The signing signals the beginning of the joint venture company – the Central Dairy Limited – and reflects public private investment and partnership.
“The project that you all know is the Illimo Dairy Farm that is already up and running successfully. We’ve been doing flavoured milks, yogurt and ice-creams…we look forward to expanding the project by 2019,” said Illan Weiss, Executive Director of Innovative Agro Industries.
Governor General Grand Chief Sir Bob Bofeng Dadae executed on behalf of the State.
Under the agreement, Kumul Consolidated Holding will take over the State’s 30 percent equity component, translating to K9.8 million or US$3 million, of which 10 percent will be allocated to Central Provincial Government.
The KCH will assume in full the State’s benefits, claims, interests, liabilities, obligations and rights under the agreement.
“I look forward to working together in this exciting project with lots of potential to grow,” said Darren Young, Managing Director of KCH.
Central Provincial Administrator Gei Guni Raga said the Central Dairy Limited Project is the Province’s impact project and the signing is a step in the right direction for the future of the project.
Shareholders of the project include Innovative Agro Industries, Central Provincial Government and now the State through Kumul Consolidated Holdings.