Wilmar in US$275 mil takeover deal to fully acquire food company Goodman Fielder

Wilmar in US$275 mil takeover deal to fully acquire food company Goodman Fielder

Michelle Zhu
11/03/19, 10:11 pm

SINGAPORE (Mar 11): Wilmar International is acquiring the remaining 50% stake in FPW Singapore Holdings it does not already own from Oceanica Developments for US$180 million ($244.55 million).

FPW Singapore Holdings indirectly wholly owns Goodman Fielder and its companies which manufacture, market, and distribute food ingredients and consumer branded food, beverage and related products.

See: Australian consumer watchdog clears Wilmar for Goodman Fielder acquisition

Oceanica Developments is an indirect wholly-owned subsidiary of First Pacific Company, an investment management firm listed on the Hong Kong Stock Exchange (HKSE). 

In a Monday filing, Wilmar says it believes its acquisition of FPW will allow significant improvements in the performance of Goodman Fielder if it is wholly-owned and managed by WIlmar.

In addition to the Mar 11 share purchase agreement it signed for the balance 50% interest in FPW, Wilmar says it will acquire the company’s shareholder loans which were advanced by Oceanica to FPW’s subsidiary for US$95 million.

The group says it may also pay Oceanica a further US$50 million in the event that certain earnings targets be met by Goodman Fielder, an indirect wholly-owned subsidiary of FPW, and the companies held by it after the FY2020 ended Dec 31.

The group intends to fund the deal by way of internal resources, and does not expect it to have a material impact on the consolidated net tangible assets (NTA) and earnings per share (EPS) for the current financial year.

Shares in Wilmar closed 1 cent higher at $3.20 on Monday. 

Right timing: STI’s upclimb supported by momentum and moving averages

SINGAPORE (Apr 20): There has been little change in the trend and chart pattern of the Straits Times Index. The index has been on a very glacial ascent towards 3,420, the target indicated when the index broke out of resistance at 3,190 in mid-Jan. Quarterly momentum eased during the past four trading sessions. The 100- and 200-day moving averages have turned positive. This coupled with positively placed DIs and rising ADX should continue to underpin the STI. The only cautionary signals are the somewhat overbought levels of short term stochastics and 21-day RSI, and stagnant vol....

SMI takes legal action against Hyflux; Maybank moves on Tuaspring

(Apr 20): SM Investments (SMI) has terminated its rescue agreement with Hyflux, it announced on Friday. Hyflux, on its part, had already on April 4 terminated the same agreement with SMI. SMI claims it has thus far abided by the agreement. “To clarify, SMI does not accept the purported termination of the Restructuring Agreement by Hyflux on 4 April 2019. This is because the termination was not in accordance with the terms of the Restructuring Agreement," said SMI. Under the agreement reached last October, SMI, led by Indonesian tycoon Anthoni Salim, was to have invested $530 million in....

CCT reports 3.8% higher 1Q DPU of 2.20 cents on higher property contributions

SINGAPORE (April 19): The manager of CapitaLand Commercial Trust (CCT) has reported a 1Q19 distribution per unit (DPU) of 2.20 cents, rising 3.8% y-o-y from 2.12 cents due to higher contributions from Gallileo and Asia Square Tower 2. Gross revenue and net property income (NPI) for the quarter increased by 3.5% and 3.4% to $99.8 million and $79.8 million, respectively. This comes after booking contributions from Gallileo – an office building in Frankfurt, Germany which the trust acquired a 94.9% stake in during June 2018 – as well as higher occupancy at Asia Square Tower 2, both of w....