CPF continues its plan on overseas expansion to boost its sales and profit for the next 5 years
The Board of Directors' Meeting of CPF or Charoen Pokphand Foods Plc. convened on January 26, 2011 passed the resolution approving the investment in Cambodia within the first quarter of 2011. In addition, CPF reported the capital increase in its subsidiaries in Malaysia and Russia for business expansion. CPF foresees the high growth potential of agro-industrial business and food business in all these 3 countries, reports www.megafishnet.com with reference to Charoen Pokphand Foods Plc.
CPF will invest in 1,475 newly issued ordinary shares of CPC (25.00% of CPC's total issued and paid-up shares after this capital increase) at the offering price of USD 11,030 per share with total value of approximately Baht 500 million. CPC involves in animal feedmill, livestock farming and food processing plant for domestic sale in Cambodia.
The Board deems that the transaction is reasonable and beneficial to CPF due to the high growth potential of agro-industrial business in Cambodia as well as solid business background of CPC and its capability to expand its businesses in the future. In the past 3 years, CPC's operating results have increased and continuously generated profits.
In addition, CPF reported its capital increased in Charoen Pokphand Foods (Overseas) LLC. and CPF Agro LLC., which are CPF's subsidiaries in Russia, with total amount of RUB 429 million or approximately Baht 440 million and RUB 60 million or approximately Baht 61 million, respectively. The objectives of capital increase are for the expansion of livestock farming in Russia.
CPF also reported its capital increase in Asia Aquaculture (M) Sdn. Bhd., CPF's subsidiary in Malaysia, with total amount of MYR 25 million or approximately Baht 253 million. The objective of the capital increase is for capital restructuring for business operation as CPF foresees the high growth potential of shrimp business in Malaysia.
Mr. Adirek Sripratak, President and Chief Executive Officer of CPF, said an investment in Cambodia and capital increase in Malaysia and Russia are in line with CPF's strategy to expand its operations to overseas. CPF plans to increase its revenue from overseas operations from 27% of total sales to 40% in the next 5 years of which will also help increasing CPF's net profit. Finally, Mr. Adirek said Cambodia, Malaysia and Russia have high growth potential of agro-industrial business and food business and great opportunity for business expansion for CPF.