CPF buys shares in Polish firm as gateway to European market
Charoen Pokphand Foods Plc (CPF) will hold 33 per cent of shares in a leading food-industry firm in Poland to use it as a staging point to enter the European Union market, a statement from CPF said.
The statement said CPF signed the Preliminary Share Subscription Agreement with SuperDrob Zaklady Drobiarsko – Miesne S.A. (SuperDrob) and the Preliminary Share Purchase Agreement with the SuperDrob’s existing shareholders on December 30 to ultimately acquire about 33 per cent of the ordinary shares of SuperDrob post its capital increase. The total considerations is euro 49.50 million or about Bt1.872 billion, the statement said.
According to CPF, SuperDrob is a modern, family-run Capital Group offering the highest quality and innovative poultry products. It dispatches half of its products abroad (to Great Britain, France, Germany and other EU countries as well as China). It has been in the market for 23 years. Its main products are such as fresh poultry meat, processed pre-seasoned and flavored poultry, as well as sausages and ham under its own brand.
Jarosław Kowalewski, Strategy SuperDrob Vice-President said: "The cooperation between SuperDrob and CPF is a great opportunity for our company. We can increase production capacities, thanks to which we will be able to offer new generation products in a wider market. We will extend the range of products and we will integrate production and logistic processes. We believe that as a result of these changes, our products will become attractive for a wider group of consumers. We also hope to actively participate in the consolidation of the meat and feed market in Poland."
Adirek Sripratak, President & CEO of CPF, said the agreements signing will mark the first step of CPF in poultry operations in the European country.
Poland is considered as a leading country in exporting poultry into the European market, he added.
“The country has a vast resources and potential with low cost of production. This will also help respond better to the regional consumer base at a faster pace, as well as the opportunity to expand into other businesses that CPF has expertise in Poland, and connect with CPF’s current network in Asia and Europe in order to create more value in the future,” Adirek said.