CPF expands operations in Taiwan
Thailands Charoen Pokphand Foods (CPF), the flagship subsidiary of the Charoen Pokphand Group, through its wholly owned investment arm CPF Investment Limited (GPFI), is acquiring a 32.41% stake (75,194,164 shares), from the five existing shareholders of Charoen Pokphand Enterprise (Taiwan) Co (CPE), Taiwan's leading agro-industrial and food firm for 826 million baht, as part of its ambitious overseas business expansion.
Taipei-listed CPE is a leader in animal feed mills, meat processing and food processing in Taiwan, with total revenue of NT$13.07 billion and net profit of NT$211.74 million last year.
According to CPF president and chief executive officer Adirek Sripratak, the investment in Taiwan will help expand income from CPF's overseas operations. Encouraged by healthy growth in the first quarter, CPF continues to expand in Turkey, India, Malaysia, Laos, the Philippines, England, China and Russia, where it opened its feed mill in Russia in May, and plans to invest more than 4.5 billion baht this year, including 2.5 billion in overseas expansion.
"CPF is confident its strategy to expand in high potential countries will enhance its business growth in the future. Our return this year on overseas operations should improve a lot and will be a major factor for CPF's net profit," he says, adding that CPF's food business is expected to grow by 100% this year from 158.67 billion baht last year with a net profit of 3.12 billion”.
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