CPF to buy 33% stake in SuperDrob
published : 4 Jan 2017 at 04:00
newspaper section: Business
Charoen Pokphand Foods Plc (CPF), the SET-listed flagship of agribusiness giant Charoen Pokphand Group, is acquiring Polish food firm SuperDrob Capital Group, the latest bid in its overseas investment.
According to the company's statement, CPF signed a preliminary share subscription agreement with SuperDrob Zaklady Drobiarsko–Miesne SA (SuperDrob) and a preliminary share purchase agreement with SuperDrob's existing shareholders on Dec 30. The deal, worth €49.50 million (1.85 billion baht) would give CPF a 33% stake in SuperDrob.
SuperDrob is a family-run company that sells fresh and processed poultry products as well as sausages and ham. Established 23 years ago, it exports half of its products to countries including Britain, France, Germany and China.
"The cooperation between SuperDrob and CPF is a great opportunity for the company," said Jaroslaw Kowalewski, SuperDrob's vice-president for strategy.
"We will extend the range of products and integrate production and logistics. We believe this will make our products attractive to a wider group of consumers. We also hope to actively participate in the consolidation of the meat and feed market in Poland."
Adirek Sripratak, CPF's president and chief executive, said the deal will mark CPF's first step in the poultry business in a European country.
Poland is a top exporter of poultry to the European market. The move will also help respond better and faster to the regional consumer base as well as provide the opportunity to expand into other businesses in Poland that CPF has expertise in, he added.