Update CAB Cakaran to buy 51% stake in Singapore poultry processing company, Tong Huat

by **Cals** Wed 08 Oct 2014, 22:59

Update CAB Cakaran to buy 51% stake in Singapore poultry processing company, Tong Huat

Business & Markets 2014

Written by Shalini Kumar of theedgemalaysia.com

Wednesday, 08 October 2014 14:21

KUALA LUMPUR (Oct 8): CAB Cakaran Corp Bhd has entered into a heads of agreement (HoA) with several parties to acquire a 51% stake in Singapore-based Tong Huat Poultry Processing Factory Pte Ltd to tap into the Singapore poultry industry.
The transaction will be satisfied via the issuance of 9.2 million CAB shares to the vendors at 90 sen each, and a cash payment of S$4.3 million (RM10.9 million).
In a filing with Bursa Malaysia this afternoon, CAB said the acquisition in Singapore, “where it does not have a significant footprint”, is “to expand its business geographically and improve its presence regionally”.
The HoA was signed with Yam Boon Yin, Toh Chye Lam, Toh Eng Chuan, Toh Eng Hai, Ang Yow Tee, Toh Chai Hock, Toh Chai Hoe, Too Siew Din and Toe Heng Choon, and the indicative price for the stake purchase was S$7.5 million (RM19.2 million).
"We wish to highlight that the purchase consideration for the proposed acquisition is indicative at this juncture and may be subject to adjustments depending on the outcome of the due diligence to be conducted on the target company," it said.
The transaction would be satisfied via the issuance of 9.2 million CAB shares to the vendors at 90 sen each, and a cash payment of S$4.3 million (RM10.9 million).
CAB, via its subsidiaries, breeds and trades broiler chickens, poultry feeds and other farm consumables, processing, exporting, wholesaling and distributing and marketing of frozen marine, meat and food products.
Tong Huat is principally an operator of poultry slaughter houses and supplier of slaughtered poultry.
CAB shares fell 4 sen or 3.74% to RM1.03 at 12.30pm, leaving it a market capitalisation of RM135.52 million.