April 29, 2019
Louis Dreyfus announces cornerstone investment in Leong Hup IPO
Louis Dreyfus Company B.V. (LDC), a leading merchant and processor of agricultural goods, has announced its cornerstone investment in a planned IPO on the Malaysian stock exchange (Bursa Malaysia) of Leong Hup International (LHI) Berhad, one of the largest fully integrated producers of poultry, eggs and livestock feed in Southeast Asia.
Established in 1978, LHI is seeking to list all of its shares on Bursa Malaysia. A leading "pure-play" poultry producer, it has developed a successful integrated livestock and feed milling model, with activities in Malaysia, Singapore, Indonesia, Vietnam and the Philippines. LHI's portfolio also includes a branded processed food business. The IPO will support LHI's intentions to continue to grow its integrated business model in newer markets, with a focus on expanding upstream operations.
"LDC's cornerstone investment in LHI's IPO is in line with LDC's strategy to diversify further downstream and strengthen our footprint in growth markets by partnering with key players in the feed, food and nutrition value chain," commented Ian McIntosh, LDC's group CEO.
Thomas Couteaudier, head of LDC's South and Southeast Asia region added: "The investment cements the rewarding commercial partnership that our two companies have enjoyed for many years. With poultry consumption in Southeast Asia continuing to grow, the backward integration of a livestock business like LHI provides better cost and quality control, as well as the opportunity for LDC to add greater value along the supply chain. This is an excellent fit and supports our mutual growth strategies in the region."
LDC's ambitious growth strategy involves increased vertical integration, diversification through value-added products, as well as investments in innovation. Strategy implementation includes greater regional presence through targeted investments, partnerships and joint ventures to accelerate growth, of which its investment in LHI's IPO is the latest example.
- Louis Dreyfus Company