CPF Investment Limited agreed to acquire an additional 25.26% stake in C.P. Pokphand Co. Ltd. (SEHK:43) for HKD 7 billion on September 30, 2021. As per the transaction, CPF Investment Limited to acquire 6.08 billion shares at HKD 1.15 per share by way of a scheme of arrangement. Post completion, CPF Investment Limited will hold 18.05 billion shares representing 75% stake of C.P. Pokphand Co. Ltd. The combination of internal cash resources and external debt financing will be used for financing the transaction. Post completion, C.P. Pokphand will make an application to the Stock Exchange for the withdrawal of the listing of the Shares. The transaction is subject to obtaining approval from not less than 75% shareholders of C.P. Pokphand Co. Ltd., sanctioned of the scheme by court and other conditions. The Board of Directors of Charoen Pokphand Foods Public Company Limited (SET:CPF), parent of CPF Investment Limited has approved the transaction. The Independent Board Committee, which comprises Cheng Yuk Wo and Udomdej Sitabutr, being all of the non-executive Directors has been established by the Board of C.P. Pokphand to make a recommendation to the Shareholders. Board committee based on the advise from financial advisor recommends shareholders to vote in favour of the scheme. As of December 15, 2021, shareholders of C.P. Pokphand approved the Scheme. As of January 7, 2022, Scheme was sanctioned without modification by the Supreme Court of Bermuda.
Scheme will become effective on Friday 14, 2022. Long Stop date of the transaction is February 28, 2022. Ballas Capital Limited acted as financial advisor to the board committee of C.P. Pokphand. UBS AG, Hong Kong Branch acted as financial advisor to CPF Investment Limited. Computershare Hong Kong Investor Services Limited and MUFG Fund Services (Bermuda) Limited acted as registrars to C.P. Pokphand.