NPP takes 2 food firms
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NIPPON PACK (Thailand), or NPP, a producer of plastic packaging and bottles, has allocated Bt79.4 million to acquire all shares of Thai Luxe Food Products Co (TLF) and NPP Foods (NPPF) from Thai Luxe Enterprises (TLUXE) as part NPP’s expansion into the fo
Suraphong Triamchanchai, managing director of Nippon Pack (Thailand), said NPP had subscribed 55 per cent of TLF’s shares at the agreed price of Bt5 per share for a total of Bt34.37 million and 45 per cent of NPPF’s shares at the agreed price of Bt10 per share, or Bt45 million.
Before acquiring the two companies, NPP already held a 45-per-cent stake in TLF and 55 per cent in NPPF. NPP wanted to expand its food business and use the manufacturing capacity of TLF for the maximum efficiency.
TLF has registered capital of Bt200 million, Bt125 million of which is registered paid-up capital divided into 20 million ordinary shares at the par value of Bt10 each. After the transaction, NPP will have the right to administer all TLF’s works solely and will proceed with further actions in changing the name of the company.
NPPF has registered paid-up capital of Bt100 million. After acquiring all of NPPF’s shares, NPP will have the right to administer all of NPPF’s works solely, Suraphong said.
“The company is confident that if it can carry on business as planned, revenue this year will be not less than Bt1 billion,” he said.
TLF produces and distributes processed frozen foods and ready-to-eat foods, while NPPF is a joint venture between NPP and TLUXE.
TLF last year reported revenue of Bt281.44 million, up from Bt248.98 million in 2014. However, it had a net loss of Bt13.14 million last year.
NPPF did not disclose its revenue but also saw a net loss last year, of Bt12.91 million. NPPF administers the A&W and Miyabi restaurant businesses.
Suraphong said his company would divide the Bt79.4-million share purchase into two instalments, half on the date of signing the contract and the remaining amount within three months thereafter.
TLUXE has said it was disposing of NPPF and TLF is it wanted to focus on its feed business and geothermal energy.
