CPF plans to buy $24-mln shares in Taiwanese affiliate
Charoen Pokphand Foods Plc (CPF), Thailand’s leading feed mill and food producer, plans to buy a total of 75,194,164 shares of Charoen Pokphand Enterprise (Taiwan) Co Ltd, worth about US$24.12 million or 826 million baht, as part of its attempt to boost oversea business.
CPF has received an approval from its board of directors since Wednesday, July 15, to purchase the amount of shares, equal to 32.41 percent of the stake in Taipei-based Charoen Pokphand Enterprise (CPE), from five existing shareholders through its wholly owned subsidiary CPF Investment Limited (CPFI).
The transaction, which will see CPFI pay 10.6 Taiwanese dollars (NT$) for a CPE’s share, is expected to be completed within the current quarter.
Adirek Sripratak, CPF’s president and chief executive officer, said the company’s investment in Taiwan, as well as the opening of a feed mill and related businesses in Russia in May, is a part of the strategy to increase the revenue from overseas operations, adding that the company has planned to spend up to 2.5 billion baht out of 4.5 billion baht budget for business expansion overseas.
According a report to the Stock Exchange of Thailand on Wednesday, CPF said its subsidiary CPFI will purchase about 4.68 percent of the stake in CPE from Forward Pass Ltd whose subsidiary Ta Chung Investment are holding, 5.66 percent from Coinaton Investments Ltd whose subsidiary Chun Ta Investment are holding, 2.80 percent from New Splendid Holdings, 9.27 percent from Bright Excel Investments, and 10.0 percent from Charoen Pokphand Taiwan Investment.
CPE, formerly Taiwan Pokphand Feed Co Ltd, was founded in 1977 to primarily engage in the production and sale of feeds in Taiwan. The company later produced fresh and processed meats. Taiwan Pokphand Feed was listed in Taiwan Stock Exchange on July 27, 1987, before changing its name to Charoen Pokphand Enterprise (Taiwan) Co in 1988.
Last year, CPE posted the total revenue of NT$13.07 billion and the net profit of NT$211.75 million, compared with the total revenue and the net profit of NT$11.03 and NT$297.06 respectively in 2007.
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