February 8, 2012

CPF consolidates 10 Thai subsidiaries

Thai food giant Charoen Pokphand Foods Plc (CPF) has consolidated 10 units operating agro-industrial and food businesses into a new firm, CPF (Thailand) Plc.

The consolidation, approved by CPF's executive board last September, is aimed at enhancing business efficiency.

The 10 subsidiaries are Bangkok Agro-Industrial Products, CP Northeastern, Bangkok Food Products, CPF Food Products, BP Food Products, Rajburi Foods, CP Industry, CP Agro-Industry, Klang and International Pet Food.

The new firm has paid-up capital comprising 7,008,250,000 ordinary shares at a par value of one baht each. The parent will own 99.98% of the new firm.

Last month CPF received shareholder approval to invest THB66.3 billion (US$2.13 billion) in China and Vietnam, which will allow the company to proceed with buying 74.18% of Hong Kong-listed CP Pokphand Co, which has two main enterprises - animal feed in China and integrated-farm operations in Vietnam through CP Vietnam Corporation.

These developments will help the company to achieve this year's revenue target of THB320-330 billion (US$10.27-$10.59 billion), up from THB210 billion (US$6.74 billion), expected for last year.