CP Pokphand to delist from Hong Kong stock exchange
CP Foods plans to privatize Charoen Pokphand Foods, aquaculture feed and breeding subsidiary in Vietnam and China.
The board of directors of Charoen Pokphand Foods Public Co. Ltd. (CPF) plans to privatize its feed subsidiary in Vietnam and China, CP Pokphand Co., Ltd. (CPP), and withdraw the listing of its ordinary shares from the Hong Kong stock exchange, it said in an announcement on its website. The proposal has a maximum cash consideration of HK$6,991.27 ($898 million).
According to the announcement, the privatization of CPP will allow making strategic decisions focused on long-term growth and benefits, free from the pressure of market expectations and share price fluctuations that arise from CPP being a publicly listed company. The transaction, which entails the delisting of CPP, is also expected to reduce the administrative costs and management resources associated with maintaining CPP’s listing status and compliance with regulatory requirements and, in turn, allow greater flexibility for the company to manage the business of CPP and its subsidiaries.
CPP operates in Vietnam and China. In Vietnam, it is principally engaged in the production and sale of animal feed, breeding, farming and sale of livestock and aquatic animals, and production and sale of value-added processed food products.