Singapore-listed cocoa and chocolate confectionery firm Petra Foods has said it has signed an agreement to acquire the shareholdings in Sime Darby Marketing for a total consideration of RM4.8m (US$1.28m) from Sime Malaysia Region Berhad, a wholly owned subsidiary company of Malaysia’s largest conglomerate, Sime Darby Berhad.
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Petra Foods said the move was aimed at strengthening the group’s position in the chocolate confectionery and branded consumer business in Malaysia. Petra Foods will take an initial 70% stake in Sime Darby Marketing with the acquisition of the remaining 30% to be completed about three months later.
Sime Darby Marketing has a well established distribution network covering the key retail chains, mini markets and pharmacies across Malaysia. This is a distribution network which Petra Foods said it can leverage on to increase the distribution of its chocolate confectionery products in Malaysia.
Currently, up to 88% of sales of Petra Foods’ branded consumer division comes from Indonesia, where it has a market share of 56.2%. The company is keen to expand its presence in Malaysia.
“We are delighted with this move, as it will extend, expand and bolster our business presence in Malaysia. It will strengthen our revenue contribution as the deal offers immediate geographical expansion, enlarged market share and a greater revenue stream,” said John Chuang, chief executive officer of Petra Foods.
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