CPF board approves share-swap deal for Chinese subsidiary’s acquisition plan

The board of Directors of Charoen Pokphand Foods Pcl (CPF) last Friday agreed to seek shareholders’ approval for its subsidiary in China to acquire 43 companies in the swine business through the issue of new shares as payment to the seller.

The move aims to integrate the business as one of the leading swine producers in China, which is the world’s largest pig market worth US$200 billion with an average annual growth of 8.3 per cent during the 10 years from 2010 to 2019 (according to China’s National Statistical Office).

Chia Tai Investment Co Ltd (CTI), whose main business is feed manufacturing and distribution in China, is an indirect subsidiary of CPF via CP Pokphand Co Ltd (CPP), a company listed on the Hong Kong Stock Exchange. 

The proposal will facilitate the integration of its feed production in China with the swine business, which is now managed by

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