KUALA LUMPUR: PPB Group Bhd’s flour-milling arm, FFM Bhd, has received regulatory go-ahead for one of its three proposed 20%-stake acquisitions in Wilmar International Ltd’s Chinese flour milling units totalling RM80.14 million — paving the way for greater collaboration between the two companies controlled by billionaire Robert Kuok.
In a statement yesterday, PPB said FFM’s 100%-owned Waikari Sdn Bhd had received the go-ahead from the Chongqing Administration for Industry and Commerce to subscribe to a 20% stake in Wilmar’s Yihai (Chongqing) Foodstuffs Co Ltd for US$2.4 million.
The go-ahead came just over a year after Wilmar agreed to pay RM378 million for 20% of FFM on Dec 2, 2010.
Having received the go-ahead from Bank Negara Malaysia in a letter dated Dec 27, Waikari will proceed to complete the proposed subscription, PPB’s statement read.
FFM’s Waikari is also paying US$5.33 million (RM16.89 million) for a 20% stake in Yihai Kerry (Beijing) Oils, Grains & Foodstuffs Industries Co Ltd and US$2.58 million for 20% of Yihai
Kerry (Shenyang) Oils, Grains & Foodstuffs Industries Co Ltd, an earlier statement dated Dec 23 read.
In addition, Waikari may also contribute to a shareholders’ loan of up to US$5.8 million for Yihai Kerry Beijing, US$4.4 million for Yihai Chongqing and US$4.8 million for Yihai Kerry
Shenyang. That would bring Waikari’s total debt plus equity investment in the three Wilmar Chinese flour units to RM80.14 million.
The proposals, which give FFM access to Wilmar’s distribution network in China, are expected to contribute significantly to PPB Group’s future earnings, but would not materially impact numbers for FY ending Dec 31, 2011, PPB said on Dec 23.
There is no financial information on Yihai Chongqing, a newly incorporated flour miller. As at Dec 31, 2010, Yihai Kerry Beijing’s net asset stood at RM48.47 million and had a RM981,399 net loss.
Yihai Kerry Shenyang’s net asset stood at RM39.6 million and had registered a RM1.1 million net loss for the financial period ended Dec 31, 2010.
The proposals are expected to be completed within five months, PPB said.
In a statement yesterday, PPB said FFM’s 100%-owned Waikari Sdn Bhd had received the go-ahead from the Chongqing Administration for Industry and Commerce to subscribe to a 20% stake in Wilmar’s Yihai (Chongqing) Foodstuffs Co Ltd for US$2.4 million.
The go-ahead came just over a year after Wilmar agreed to pay RM378 million for 20% of FFM on Dec 2, 2010.
Having received the go-ahead from Bank Negara Malaysia in a letter dated Dec 27, Waikari will proceed to complete the proposed subscription, PPB’s statement read.
FFM’s Waikari is also paying US$5.33 million (RM16.89 million) for a 20% stake in Yihai Kerry (Beijing) Oils, Grains & Foodstuffs Industries Co Ltd and US$2.58 million for 20% of Yihai
Kerry (Shenyang) Oils, Grains & Foodstuffs Industries Co Ltd, an earlier statement dated Dec 23 read.
In addition, Waikari may also contribute to a shareholders’ loan of up to US$5.8 million for Yihai Kerry Beijing, US$4.4 million for Yihai Chongqing and US$4.8 million for Yihai Kerry
Shenyang. That would bring Waikari’s total debt plus equity investment in the three Wilmar Chinese flour units to RM80.14 million.
The proposals, which give FFM access to Wilmar’s distribution network in China, are expected to contribute significantly to PPB Group’s future earnings, but would not materially impact numbers for FY ending Dec 31, 2011, PPB said on Dec 23.
There is no financial information on Yihai Chongqing, a newly incorporated flour miller. As at Dec 31, 2010, Yihai Kerry Beijing’s net asset stood at RM48.47 million and had a RM981,399 net loss.
Yihai Kerry Shenyang’s net asset stood at RM39.6 million and had registered a RM1.1 million net loss for the financial period ended Dec 31, 2010.
The proposals are expected to be completed within five months, PPB said.
