CFA Society Singapore
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.
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.