Japfa to sell minority stake in China dairy business to Meiji
15/04/2020 13:59
April 15 (Reuters) - Singapore agri-food company Japfa Ltd
JAPF.SI on Wednesday said it will sell a 25% stake in its
dairy farming business in China to Meiji 2269.T for $254.4
million, as the Japanese group expands its footprint in the
Chinese dairy industry.
"This...partnership will secure the supply of quality raw
milk for Meiji’s downstream operations and provide a stable
revenue stream for Japfa," Chief Executive Officer Tan Yong Nang
said.
The Singapore-listed firm intends to use proceeds from the
deal to repay a $253 million term loan facility, thus improving
its leverage ratio and balance sheet.
Japfa added that its day-to-day operations have so far not
been impacted by the coronavirus pandemic since it is involved
in the provision of essential services by supplying protein
foods.
"However, as this outbreak is an uprecedented event, the
impact going forward cannot be reliably estimated," the company
said.
Credit Suisse (Singapore) Limited is the exclusive financial
advisor to Japfa for the deal.
(Reporting by Shriya Ramakrishnan in Bengaluru; Editing by
Kirsten Donovan)
((Shriya.Ramakrishnan@thomsonreuters.com; +91 8061822842 ;))