Bangkok--10 Apr--Bangkok Bank
Bangkok Bank together with Krung Thai Bank, CIMB Bank Berhad, Thanachart and Industrial & Commercial Bank of China (Thai) signed a contract with CPF Investment Limited (CPFI), a subsidiary of Charoen Pokphand Foods Limited, to arrange a finance facility of US$740 million for the acquisition of CP Pokphand Company Limited (CPP).
CPP’s structure is divided into two groups — one which is doing business in China, mainly focused on animal feed, and another which is a fully integrated agribusiness in Vietnam. With this purchase, CPF Group will become the largest agro-industrial company in Asia Pacific with subsidiaries in 12 countries covering 3 billion consumers.
Mr. Chartsiri Sophonpanich, President of Bangkok Bank which arranged the syndicated loan said Bangkok Bank’s relationship with CP Group extends over more than 60 years and the business opportunities for CPF Group are thriving. Both China and Vietnam are countries with great potential for economic expansion that will lead to higher levels of consumption and even greater demand for CPF products.
“CP Group is one of the outstanding success stories of Thai companies going offshore and CPF is a shining star in the CP Group, with investments in 12 countries around the world.”
CPP is the second-largest animal feed manufacturer in China, with a market share of 4 percent, and a distribution network spread over 28 provinces and special territories in China. Apart from the animal feed business, which accounts for 95 percent of its business in China, other business activities of CPP include the sale of antibiotic vet drug and the production of motorcycles.
In Vietnam CPP is also a major market player in the fully integrated agribusiness. CPP is the largest animal feed and aquaculture feed manufacturer in Vietnam. It holds the No. 1 position for commercial farming of swine, poultry and shrimp and is also active in the food production business in Vietnam — an area which is growing strongly.
Mr. Chartsiri said Bangkok Bank has great confidence in CPF’s vision and competency, and so is pleased to support the acquisition of CPP which will lead to business synergies and economies of scale which will support the continued success of CPF.