KUALA LUMPUR (June 1): Regional poultry producer Leong Hup International Bhd (LHI) has acquired the entire equity interest in food manufacturer and distributor The Baker’s Cottage Sdn Bhd (TBC) for RM17.94 million.
Its wholly-owned subsidiary Leong Hup (M) Sdn Bhd bought the 43.43 million shares from Emerging Glory Sdn Bhd, which is owned by LHI executive chairman Lau Chia Nguang, his brothers and their nephews who also sat on LHI’s board, the company said in a filing with Bursa Malaysia today.
Leong Hup (M), through unit Leong Hup Agrobusiness Sdn Bhd, also inked agreements today to acquire TBC brand bakery business from Astaka Shopping Centre (Muar) Sdn Bhd for RM1.53 million and TBC retail business owned and operated by Poly-Yarn Industries Sdn Bhd for RM862,126.
Astaka owns and operates six outlets in Johor, Melaka, and Negeri Sembilan while Poly-Yarn Industries owns and operates three outlets in Selangor.
“The proposals will allow LHI to own the Bakers Cottage brand and integrate vertically downward to capture incremental value added from its poultry-related product sales and provide margin stability in times of live broilers supply-demand imbalance,” LHI said.