March 4, 2015

CPF to acquire CP Cambodia for US$86.5 million

 

Charoen Pokphand Foods (CPF) is planning to acquire the remaining shares of CP Cambodia for 2.8 billion baht (US$86.5 million), in which it currently holds a 25% stake, according to Deal Street Asia.

The move will help CPF consolidate its position as a leading agricultural-industry operator in ASEAN.

CPF's president and chief executive Adirek Sripratak said that the transaction would be beneficial to CPF as Cambodia's agro-industrial and food business has strong growth and CP Cambodia is already a leading player there.

Last year it made a revenue of 8.3 billion baht with a net profit of 744 million baht. The revenue came mainly from swine and poultry business.

Meanwhile, CPF reported a revenue of 426.03 billion baht last year, nearly 60% of which came from global operations. This is expected to grow at an average annual rate of 15% over the next five years.

The acquisition is in line with CPF's strategy to expand its business overseas, Adirek said.

This year, CPF targets to boost its sales by at least 10% and plans to acquire more companies related to its core business.