Feb 2, 2015

Japfa buys remaining 15% of Myanmar business for US$5.7m

MAINBOARD-LISTED agri-food company Japfa on Monday said it has acquired the remaining 15 per cent of Japfa Comfeed Myanmar (JCMA) for US$5.7 million, making JCMA a wholly-owned subsidiary of the group.

The acquisition is made via a conditional share purchase agreement (SPA) between Japfa's wholly-owned subsidiary Japfa Myanmar JV - which currently holds 85 per cent of JCMA - and Best Livestock Limited, an unrelated third party, for the remaining 15 per cent of the issued share capital of JCMA.

The US$5.7 million consideration was arrived at on a willing-buyer, willing-seller basis, said Japfa. A refundable deposit of US$1.0 million will be paid around Feb 2, and the remaining US$4.7 million will be paid upon completion of the SPA, after all conditions precedent have been satisfied, the primary condition being the approval of the Myanmar Investment Commission.

JCMA, which runs a vertically integrated poultry business ranging from feedmills, poultry breeding farms and hatcheries, to commercial and contract farms, had net assets of US$19.5 million as at Sept 30, 2014, according to Japfa.

Source: The Business Times