CPF Acquires Russian Pork, Grain Firm05 August 2013
THAILAND & RUSSIA - Charoen Pokphand Foods Plc (CPF) plans to spend 3.15 billion baht (THB; €76.8 million) for an 83 per cent share of Russia Baltic Pork Invest ASA (RBPI), a large grain and pork producer in the Kaliningrad region of Russia.
CPF Investment Limited (CPFI), a subsidiary of CPF, will purchase the shares from Capman Russian Fund LP in the third quarter of this year, reports Bangkok Post.
RBPI, which also has operations in Nizhny Novgorod and Penza, is plans to expand its operations into mainland Russia.
President and chief executive officer of CPF, Adirek Sripratak, said the transaction is part of the company's expansion plan into food and in Russia, where the company already operates a feed mill and integrated swine businesses.
In 2009, CPF, the food flagship of Charoen Pokphand Group, made a THB3.5-billion investment in advanced feed mills and swine farms in Lukhovitsy county.
The investment aims to serve the huge meat consumption of Russians which stands at about 2.75 million tonnes a year while local production capacity remains low, leading to the import of around 750,000 tonnes of pork every year.
RBPI last year reported sales of THB1.39 billion with THB343 million net profit.
CPF projects sales this year to increase by 10 to 15 per cent from THB357 billion generated in 2012. Operations in 12 countries including Russia are expected to contribute about 55 per cent of revenue in 2013, thanks to aggressive investment expansion in recent years.
According to Bangkok Post, Mr Adirek said the company board also approved the use of THB1.2 billion to acquire 59.99 shares of CP-Meiji Co (CP-Meiji), which manufactures and distributes dairy products.
The company now offers dairy products such as pasteurised milk, yoghurt, cup yoghurt and drinking yoghurt under the Meiji and Meiji-Paigen brand. Last year's sales were THB5.17 billion with THB206 million in net profit.
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