CCK acquires stake in animal feed manufacturer Gold Coin

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KUCHING: CCK Consolidated Holdings Bhd (CCK) has entered a Joint Venture Shareholders Agreement (JVA) with Gold Coin Malaysia Group Sdn Bhd (GCMG) for the acquisition of a 27.2 per cent equity stake in Gold Coin Sarawak Sdn Bhd (GCS), one of the leading animal feed manufacturers in Sarawak.

Pursuant to the JVA, CCK will acquire 2,176,000 ordinary shares of RM1.00 each in GCS for a cash consideration of RM20.672 million from GCMG.

Upon completion of the agreement, the shareholders of GCS will be GCMG (72.8 per cent) and CCK (27.2 per cent).

In making the announcement, CCK non-independent non-executive chairman Datuk Tiong Su Kouk noted CCK Group has a long history of collaboration with GCS and was pleased to note that GCS has been a major supplier of quality feed and provider of technical services to CCK Group for more than 30 years.

Meanwhile, CCK Group managing director John Tiong added that the joint venture was a strategic opportunity for CCK to venture into the feed mill business via a reputable partner cum profitable operator with established brand name, market position, client base and extensive technical knowledge.

“Upon completion of the joint venture, the group will have a presence in the entire value chain of the poultry industry covering feeds manufacturing, farming and processing to distribution and retailing.

“In addition, the CCK Group also secures long term supply of quality feeds for the CCK Group’s poultry operations.

“The JVA also strengthens CCK Group’s collaboration with GCMG to jointly explore other business opportunities beyond Sarawak in line with CCK’s expansion plan,” he said.

He also added that in the past few years, the group has also expanded its presence regionally with the setting up of retail outlets for cold storage products in Indonesia.

CCK announced in April that it is undertaking a 1-for-1 bonus issue of up to 157,679,700 bonus shares to reward shareholders and increase its share capital base in line with its increased scale of operations.

For FY2015, the CCK Group recorded a revenue of RM494.09 million, an 9.5 per cent increase from FY2014 revenue of RM451.28 million.

The group also reported a PAT of RM13.5million, a 63 per cent increase from the RM8.28 million recorded in FY2014.