Bangkok--20 Dec--CPF
Mr. Adirek Sripratak, President and CEO of Charoen Pokphand Foods Public Company Limited or CPF said that the Board of Directors’ Meeting on December 20, 2006 approved the company to expand its businesses in the People’s Republic of China and Malaysia as they have potential in aquaculture industry.
For the People’s Republic of China, the Board approved CPF to establish a new company, 100% owned by CPF, under the name of C.P. Aquaculture (Dongfang) Co., Ltd. Its initial registered capital is 10 million yuan renminbi , or equivalent to 45.22 million baht (calculated at the average selling rate quoted by commercial banks as of December 18, 2006 which is 4.5226 baht per yuan renminbi). This company will operate shrimp hatchery business in the People’s Republic of China, This establishment of a subsidiary is in line with our plan to expand aquaculture business in the People’s Republic of China.
For Malaysia, CPF invested in the aquaculture business last year and we perceived that there is a potential to invest in fish feed business over there. The Board approved Star Feedmills (M) Sdn. Bhd., a subsidiary which CPF indirectly holds 100 stake, to purchase fixed assets in connection with fish feed businesses for the value of approximately 1.29 million Ringgit Malaysian, or equivalent to 13.13 million baht (calculated at the average selling rate quoted by commercial banks as of December 18, 2006 which is 10.1774 baht per Malaysian Ringgit). This transaction will fulfil CPF’s objective in expansion of aquaculture business in Malaysia, where there is a potential inaquaculture industry.