Thai food manufacturer Charoen Pokphand Foods (CPF) is to acquire a majority stake in Russian pork producer Russia Baltic Pork Invest.
CPF will purchase 822,191 shares from Capman Russian Fund for EUR72.2m (US$95.9m). The deal means CPF will hold an equity interest in Russian Baltic of not more than 78%, the firm said in a stock exchange filing.
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Russia Baltic is a grain and pork producer in the Kaliningrad region of Russia. The company, which is targeting to expand its operations, reported net profit of THB343.45m (US$11m) in 2012 and sales of THB1.39bn.
CPF already has a presence in Russia with its subsidiary Charoen Pokphand Foods Overseas, which manufactures animal feed and mixed fodders.
The company said it believes the investment would help “improve pig production efficiency further and enhance growth potential in the swine business in Russia which has a large under-supply [in the] market.
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Once complete, Russian Baltic and its subsidiaries will become divisions of CPF.
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By GlobalDataEarlier this year, CPF agreed a deal to buy China-based meat and ready-to-eat foods producer Chia Tai Food Enterprise in a deal worth THB483m (US$15.8m).
