Fraser and Neave announced today that it has entered into a conditional agreement to acquire 100% of the issued share capital of King’s Creameries (S) for $20.8 million. The transaction is subject to obtaining final regulatory approval.

King’s Creameries is a wholly‐owned subsidiary of Lion Nathan National Foods, a leading food and beverage company in Australia and New Zealand. Lion Nathan National Foods itself is a wholly‐owned subsidiary of Kirin Holdings Company which acquired a 14.7% interest in F&N in July 2010.

Negotiations for this transaction started before Kirin became a shareholder of F&N.

Incorporated in 1975, King’s Creameries is a significant ice cream player in Malaysia and Singapore which markets its products under its flagship brand King’s. Its two manufacturing facilities in Peninsular and East Malaysia produce a full range of ice cream products from take‐home tubs to novelties in unique as well as traditional flavours that are marketed through supermarkets, convenience stores and foodservice operations in Singapore, Peninsular and East Malaysia. These products are also exported to other countries, including Brunei, Hong Kong, Macau and the Philippines.

Koh Poh Tiong, F&N’s Chief Executive Officer, Food and Beverage, says, “The acquisition of King’s Creameries is in line with our strategy to scale up our existing ice cream business in Singapore, Malaysia and Thailand, thereby strengthening its overall market presence and position. It paves the way for us to review our combined operations to extract synergies as well as consolidate and offer a complementary portfolio of brands and products to satisfy a diversity of consumer segments.”