Charoen Pokphand Foods Plc (CPF) is planning to acquire Chia Tai Food Enterprise, a manufacturer of meat and ready-to-eat products in China. The transaction to acquire 100% equity interest in Qinhuangdao, China-based enterprise. The transaction will be made through CP China Investment Ltd, a wholly owned subsidiary of Hong Kong based CP Pokphand (CPP), in which CPF holds a 76% stake. The transaction will amount to USD 15.8 million and the funding will come from CPP.
According to a CPF statement, the transaction will allow the company to engage in the manufacture and distribution of processed food and ready meals in China. It will pave the way for the group to be the leader in the food business in China where ready meals have promising growth.