August 6, 2013

Charoen Pokphand to acquire majority stake in Russia Baltic Pork Invest
 

Charoen Pokphand Foods (CPF) is to acquire a majority stake in Russian pork producer Russia Baltic Pork Invest, after which CPF will hold an equity interest in Russian Baltic of not more than 78%.

CPF will purchase 822,191 shares from Capman Russian Fund for EUR72.2 million (US$95.9 million).

CPF already has a presence in Russia with its subsidiary Charoen Pokphand Foods Overseas, which manufactures animal feed and mixed fodders.

The company said it believes the investment would help "improve pig production efficiency further and enhance growth potential in the swine business in Russia, which has a large under-supply in the market."

Russia Baltic Pork Invest ASA is a company registered in Norway that owns an 8,000 hectares grain farm and pork producer in the Kaliningrad region of Russia. The company, which is targeting to expand its operations, reported net profit of THB343.45 million (US$11 million) in 2012 and sales of THB1.39 billion (US$44.4 million).