KUALA LUMPUR (June 2): Snacks and candy manufacturer Cocoaland Holdings Bhd has received another take-over offer, this time from Hong Kong-listed First Pacific Co Ltd, to acquire its entire business for RM2.70 per share or a total RM463.32 million, cash.
In a filing with the exchange, Cocoaland (fundamental: 2.8; valuation: 2.0) said it has received an indicative non-binding proposal dated May 29 from First Pacific, which detailed that the proposed takeover of its business and undertaking, including all its assets and liabilities, will be undertaken by a special purpose vehicle (proposed acquiror).
“Liew Fook Meng, an executive director and substantial shareholder of Cocoaland, and certain shareholders of Leverage Success Sdn Bhd, a substantial shareholder of Cocoaland (Liew Group), will acquire an equity stake in the proposed acquiror to be agreed upon by First Pacific and Liew Group,” it said.
The new takeoffer follows a recent offer by Navis Asia Fund VII on May 22, with RM377.52 million or RM2.20 per share, which Cocoaland’s board of directors had unanimously rejected.
First Pacific is led by Anthoni Salim as chairman. The tycoon is president and CEO of Indonesia’s biggest conglomerate Salim Group — a Hong Kong-based investment management company with interests in telecommunications, consumer food products, infrastructure and natural resources.
As at March 24, First Pacific owns a 50.1% stake in PT Indofood Sukses Makmur Tbk — one of the world’s largest manufacturer by volume of wheat-based instant noodles. PT Indofood is also one of the largest plantation companies by area and the largest flour miller in Indonesia.
Trading in Cocoaland’s shares, suspended since Monday (June 1), will resume at 9am tomorrow (June 3). The counter was last traded at RM2.04, giving it a market capitalisation of RM350.06 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)