CP Foods to acquire local subsidiary for $88 million
CP Foods to acquire local subsidiary for $88 million
Charoen Pokphand Foods Public Company Limited will acquire the remaining 75 per cent shares of CP Cambodia for $88 million, strengthening its position as an agro-business operator in the ASEAN region.
After completing the transaction, CP Cambodia will become a wholly owned subsidiary of CPF, which previously owned a 25 per cent stake
“Most of CP Cambodia’s revenues were derived from swine and poultry business,” said Adirek Sripratak, CEO of CP Cambodia, in the press release.
CPF’s board of directors has approved the acquisition and will put forth the proposal to the annual general meeting with shareholders in April.
CP Cambodia, a major stakeholder in Cambodia’s agro-business sector, reported total revenues of $256 million last year and net profit close to $23 million.
Uthai Tantipimolphan, president of CP Cambodia, told the post in September that the company would spend $8 million to increase production from the current 1 million heads of swine to 2 million by 2019.
