Waikari To Acquire Stakes In Two Flour Firms In China

KUALA LUMPUR, Dec 31 (Bernama) -- Waikari Sdn Bhd, a wholly owned unit of FFM Bhd, which in turn is a 80 per cent-owned subsidiary of PPB Bhd has proposed to acquire 20 per cent equity interest each in selected subsidiaries of Wilmar International Ltd in China which are involved in flour milling. In a filing to Bursa Malaysia (Malaysia's stock exchane), PPB said Waikari had Friday entered into the Dongguan Shareholders Agreement and Dongguan Equity Transfer Agreement with Wilma China New Investments Pte Ltd (WCNI) for the purchase of 20 per cent equity interest in Dongguan Yihai from the latter for about RM21,421,383 cash. Following the agreement, Waikari may be required to contribute to a proportionate shareholders’ loan of up to RM22,687,350 to Dongguan Yihai. Waikari has also inked the Zhoukou Shareholders Agreement with Wilmar-ADM Flour Investments Pte Ltd (WAFI) and Yihai Kerry Investments Co Ltd and the Zhoukou Equity Interest Transfer Agreement with WAFI for the proposed acquisition of 20 per cent stake in Yihai Zhoukou from WAFI for about RM9,006, 926 cash. Waikari may also be required to contribute to a proportionate shareholders’ loan of up to RM9,532,500 to Yihai Zhoukou. Upon completion of the acquisition of Zhoukou, WAFI, Yihai Kerry and Waikari will respectively own 70 per cent, 10 per cent and 20 per cent stake in Yihai Zhoukou. PPB said the total investments by Waikari in the acquiree companies was proposed to be funded by Waikari either through internally generated funds of the FFM group or onshore/offshore financial institutions, if requested. The proposals represent an opportunity for the FFM group to tap on the distribution network of the Wilmar group in countries in which the FFM group does not have a presence, such as in China. "FFM would have an opportunity to expand into the growing economies of major provinces in China where the per capita flour consumption is expected to increase in future in tandem with rising disposable income,” PPB said. -- BERNAMA