Thoresen Thai Agencies Plc (TTA) announced yesterday that it had acquired a 9% stake in Sino Grandness Food Industry Ltd, a leading food and drink maker and exporter, as part of a long-term strategy of diversification and sustainable growth.
The purchase of 60 million shares makes TTA the second-biggest shareholder in Sino Grandness, with one seat on the board.
Chalermchai: Honing vision and strategy
President and chief executive Chalermchai Mahagitsiri said TTA bought the stake in Singapore-listed Sino Grandness at 40 Singaporean cents a share, or an aggregate consideration of S$24.4 million (611 million baht).
"In 2014, we made significant strides in honing our vision and strategy and building upon our existing portfolio of bulk shipping, energy and infrastructure businesses," Mr Chalermchai said.
"We are delighted to have completed this transaction, as it represents the latest milestone in our journey as a rapidly growing conglomerate with a diversified set of international business and revenue streams.
"In line with our strategy, we will continue to drive organic growth, as demonstrated in 2014, while also seeking out other new investment opportunities that are aligned with our vision for the group's future, particularly where we see synergies that can deliver incremental growth."
He said Sino Grandness presented TTA with strong growth potential, stable cash flow and low risk.
Sino Grandness is one of China's leading canned food and fruit drink makers, with more than 75% of the Chinese loquat juice market.
The consultancy Frost & Sullivan forecasts 39% annual growth in the Chinese loquat juice market through 2017.