Malaysia's Leong Hup Holdings to acquire poultry firm

Malaysia's largest poultry producer Leong Hup Holdings Bhd is set to acquire poultry company Ladang Ternakan Maju (LTM) in an effort to expand its core business.

For a total of MYR34.05 million (US$10.1 million), Leong Hup will acquire LTM and increase its stake in plantation firm Alam Muhibah Sdn Bhd (AMSB). 

Leong Hup is proposing to acquire LTM's entire paid-up capital of 5.09 million shares for MYR12.75 million (US$3.8 million) via the issue of 12.14 million shares in LHH at an issue price of MYR1.05 (US$0.31) each.

Leong Hup said the acquisition of LTM will increase its production of day-old chicks by 10 million birds to 134 million birds per annum, while the production of broilers will increase from about 38 million to about 47 million birds.

The acquisition would also strengthen Leong Hup's position as one of the largest integrated poultry farm and hatchery operators in Malaysia, said the company.