Guan Chong said approached by suitors (5102)

Guan Chong Bhd, the Malaysian cocoa processor pursuing a secondary
listing in Singapore, is considering selling a stake to another company
instead, said four people with knowledge of the matter.

The
Pasir Gudang, Johor-based company has been approached by suitors, one
of the people said, asking not to be identified as the deliberations
are private. Guan Chong will probably scrap the planned share sale in
Singapore if it reaches a deal, the person said, without identifying
potential buyers.

Guan Chong shares have jumped 11 percent in
Kuala Lumpur trading since April 9, when the company said it planned to
sell stock in Singapore, bringing its market value to RM988 million
(US$310 million). Guan Chong is seeking to sell a stake of 20 percent
to 30 percent to fund expansion, the person said.

Chief
Executive Officer Tay Hoe Lian is traveling and unavailable to comment,
said a person who answered the phone at the company's head office
yesterday. He didn't immediately respond to an e-mail seeking comment.

The
company plans to increase its production capacity and sees acquisitions
and overseas expansion as key sources of growth, according to a
prospectus filed with the Monetary Authority of Singapore on June 28.

Guan
Chong, which counts Mars Inc and South Korea's Lotte Group among its
customers, reported net income of RM31.3 million for the quarter ending
March 31, up from RM30.1 million a year earlier. -- Bloomberg