May 4, 2015
Leading KL food company buys Singapore poultry processor
Mr. Chew Chee Kong, Group Executive Director, CAB Cakaran
By F.E. OLIMPO
KUALA LUMPUR -- A leading Malaysian integrator, CAB Cakaran, says its acquisition of the controlling stocks in a Singaporean poultry processing company could be completed in June.
Chew Chee Khong, CAB Cakaran''s group executive director, told visiting Asian agribusiness journalists that the acquisition of Tong Huat Poultry Processing Factory Pte Ltd would give CAB "an immediate presence in Singapore."
Tong Huat, according to him, is "one of the seven licensed slaughterhouses in Singapore" with a market share of 15%.
Under the deal, CAB would acquire 51% stake in Tong Huat at a cost CAB S$7.4 million (US$5.56 million). Mr. Chew said 10% of the acquisition cost had been paid with the balance to be delivered at the conclusion of the negotiation.
He said "minor issues" remained to be sorted out to complete the deal.
Mr. Chew said Tong Huat had the capacity to process 400,000 birds a month. Once CAB takes control of the Singaporean company, it would set up a division to produce cold meat cuts for distribution in Singapore.
With a capital of RM159 million (US$44.2 million), 30-year old CAB Cakaran is one of Malaysia''s largest feed producers and integrators. It has 140 broiler farms, producing 3.6 million broilers a month, and 10 breeder farms in Malaysia.
Mr. Chew said the listed company has been on an expansion mode during the last few years. In March this year, he added, it signed a memorandum of understanding with Japan''s New Chemical Trading Co. Ltd. and another Malaysian company for the establishment of a biomass power generation business, which will produce fertiliser as a by-product through the incineration of chicken droppings.
The plant, according to Mr. Chew, will generate electricity which will be sold to Tenaga Nasional Berhad, the Malaysian power company, and it will have four by-products- fertiliser, feather meal, bone meal and blood meal.
He also revealed that talks were undergoing for joint-venture projects between CAB Cakaran and several companies in Indonesia, Myanmar and Pakistan.