CPF to increase investments in Cambodia, Russia, Malaysia
Charoen Pokphand Foods Plc (CPF) is setting its sights on increasing sales from its overseas operations in Cambodia, Russia and Malaysia by 40% in five years time, up from its present 27%.
It will spend about 1.25 million baht to increase its CP operations in these three countries which would increase overseas income proportion from the present 27% to 40% within the next five years, says CPF president and chief executive AdCPirek Sripratak.
“CPF will spend 500 million baht to acquire 1,475 newly issued ordinary shares at US $11,03 per share, in CP Cambodia Co (CPC) manufacturer of animal feed and meat products, increasing CPF’s shares in CPC to 25% of paid-up capital.”
CPF, he says, has also raised its capital by 25 million ringgit (baht 252 million) in its Malaysian subsidiary, Asia Aquaculture (M) Sdn Bhd, to facilitate its capital restructuring and to bolster both its shrimp-farm and shrimp processing business.
In addition, as part of its investment increasing CPF’s capital in two companies in Russia; Charoen Pokphand Foods (Overseas) has increased its capital holdings, worth 429 million roubles (Baht 444 million) and 60 million roubles in CPF Agro, to facilitate expansion of its animal farms.
In another move to increase its stake in overseas subsidiaries, the Charoen Pokphand Group has allowed its Hong Kong-based subsidiary, CP Pokphand, to buy a 70.8 per-cent stake in CP Vietnam Livestock Corp, the purchase price to be determined as an adjusted multiple of the target’s net income that would be paid with an issue of new stock and convertible shares.
(By Joyce Rainat)
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