Thursday 28 Mar 2024
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KUALA LUMPUR (April 14): Integrated poultry firm and retail player CCK Consolidated Holdings Bhd has proposed to acquire the entire stake in Indonesia-based PT Bonanza Pratama Abadi for US$8 million (RM33.74 million) cash.

In a filing with Bursa Malaysia on Thursday (April 14), the group said its wholly-owned subsidiary PT Adilmart has entered into a conditional sale share agreement with Mitsumoto Corp Ltd, Seven Star Enterprise Sdn Bhd, Harvest Bonanza Sdn Bhd and Miradewi Rosadi for the proposed acquisition. 

PT Bonanza is principally engaged in processing and freezing shrimp for local and export sales including principal products such as frozen raw shrimp, frozen cooked shrimp and frozen nobashi ebi shrimp.

“The proposed acquisition will be synergistic to CCK’s existing seafood business as well as the business of poultry processing and manufacturing of downstream products such as sausages, patties and meatballs, and as such is expected to complement the CCK Group’s existing activities. 

“It will also provide an opportunity for CCK to establish business integration with PT Bonanza leading to improved operational efficiencies and reduced production costs through its value chain," said CCK.

In a separate statement, CCK group managing director Tiong Chiong Hiiung said based on the latest audited figures as at Dec 31, 2020 for PT Bonanza, total revenue amounted to US$14.8 million (about RM60 million), while earnings were just below US$1 million (about RM4 million).

"In addition to adding size and scale to our prawn segment, this proposed acquisition is also earnings accretive for CCK, with a purchase consideration at 8.7 times PE multiple," he added.

Upon completion of the proposed acquisition, PT Bonanza will become a wholly-owned subsidiary of CCK, allowing CCK to have control over PT Bonanza’s management and operations and reap the benefits of future revenue and profits as well as consolidate the financial results of PT Bonanza, it added. 

The group said the proposed acquisition will be funded from internal funds and/or bank borrowings and is expected to complete by the second half of the year.

CCK operates 63 CCK Fresh Mart retail stores, two CCKLocal supermarkets and six wholesale stores in Sabah and Sarawak.

Shares in CCK ended unchanged at 56.5 sen on Thursday, valuing the group at RM356.56 million.

 

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