The company's board of directors has approved the purchase of 1,475 newly issued ordinary shares at US$11,030 per share totalling 500 million baht (THB) in CP Cambodia Co (CPC), a manufacturer of animal feed and meat products, according to The Nation of Thailand. The deal has increased CPF's share in CPC to 25 per cent of paid-up capital.
Adirek Sripratak, president and chief executive officer of CPF, said that the company had to complete the purchase within the first quarter of this year.
"The deal will encourage CPF's business in Cambodia, where agroindustrial goods have great growth potential and CPC has strong fundamentals to further the business growth," Mr Adirek said.
CPF also raised its capital by 25 million ringgit (MYR; THB252 million) in its subsidiary Asia Aquaculture (M) Sdn Bhd in Malaysia. The plan is to facilitate the company's capital restructuring to bolster its shrimp farm and shrimp processing businesses.
Moreover, CPF has completed the process of raising its capital in two companies in Russia: Charoen Pokphand Foods (Overseas) worth 429 million roubles (RUB; THB444 million) and RUB60 million in CPF Agro. This is to facilitate expansion of its animal farms.
"These financial plans have been designed to ensure we increase our overseas income proportion from 27 per cent now to 40 per cent within the next five years," Mr Adirek said.
Meanwhile, Charoen Pokphand Group also recently allowed its Hong Kong-based subsidiary, CP Pokphand, to buy a 70.8 per cent stake in CP Vietnam Livestock Corp, according to Bloomberg.
CP Pokphand said the purchase price would be determined as an adjusted multiple of the target's net income and the company would pay with an issue of new stock and convertible preferred shares, concludes the report in The Nation.
CPF Increases International Interests
GLOBAL - Charoen Pokphand Foods (CPF) has pushed forward its investments overseas by raising capital and purchasing larger stakes in its subsidiaries.
