PETALING JAYA: Guan Chong Bhd’s sub-subsidiary GCB Cocoa Singapore Pte Ltd (GCBCS) has entered into an agreement with the Netherlands’ Schokinag Holding BV to acquire the Dutch company’s entire stake in Germany-based Schokinag Holding GmbH (SHG) for €29.93 million (RM137.84 million).
In addition, an amount of €2.3 million will be paid by GCBCS to Schokinag Holding which in turn will contribute the same amount to SHG’s free capital reserve for working capital funding purposes.
The purchase price for the sold shares and the additional working capital funding will be paid in two tranches.
Upon completion of the proposed acquisition, SHG will become a 100%-owned subsidiary of GCBCS.
SHG is engaged in the manufacture, sale and distribution of industrial chocolates, including chocolate couvertures, from liquid to solid, in various sizes, shapes and packaging types, and liquid compounds.
SHG has an annual bean grinding capacity of 7,000 tonnes, to grind cocoa beans into cocoa liquor/cocoa mass; and industrial chocolate manufacturing capacity of 90,000 tonnes a year.
The acquisition will be financed with internally generated funds, which partially will be reimbursed via banking facilities.
“The proposed acquisition is part of the group’s global expansion strategy, to expand our presence to Europe and position the group to target new growth opportunities in the world’s largest chocolate consuming market. Through the exercise, the company expands its product range into the downstream industrial chocolate B2B market,” Guan Chong said in a stock exchange filing.
Barring any unforeseen circumstances, the proposed acquisition is expected to be completed within the first quarter of 2020.
source https://www.thesundaily.my/business/guan-chong-expands-in-europe-with-purchase-of-german-chocolate-maker-XM1806716
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