Bunge International Limited (Bunge) today announced the sale of its fifty percent (50%) shareholding in KMP Bunge, the Singaporean and Indonesian integrated pork producer to its partner, The KMP Group of Singapore (KMP).
The companies joined in partnership in 1994. Since that time KMP Bunge has become the sole supplier of live pork to the Singapore market, and has roughly doubled the output of its facilities, which annually produce 330,000 pigs from 25,000 breeding sows.
The cash sale includes Bunge’s holdings in pig production facilities on the Indonesian island of Bulan, the transfer of its fifty percent (50%) stake in PT Indo Bunge Feedmill, a stock feed plant located in Jakarta, as well as its investment in a pig slaughterhouse facility in Singapore. All of the assets were part of Bunge Asian Meat Holding Ltd., a subsidiary holding company of Bunge International Limited.
The divestiture represents the latest in a line of strategic moves by Bunge, which are aimed at sharpening the company’s focus on its declared core businesses: grain and oilseed trading and processing, fertilizer, and industrial and consumer food production. Earlier this year Bunge acquired Brazilian fertilizer company Manah, S.A., making it the largest fertilizer producer in Latin America.
“The sale of our pork businesses in Singapore and Indonesia constitutes a natural step toward fulfilling the strategic plan of focusing Bunge on its core agribusiness strengths,” stated Bill Wells, CFO of Bunge International Limited. “The transaction represented an opportune time to divest a business that, while growing, did not match the strategic interests of our larger company.”
With the sale Bunge has reduced its investments in the Southeast Asia/Pacific region. The company retains limited meat holdings in Australia.
“We have been pleased with the growth of our meat operations in Singapore and Indonesia, and we are happy to be able to transfer our assets to our partners, with whom we have found great success over the past six years,” stated Barry Weir, president of Bunge Australia Holdings.
Bunge, based in White Plains, New York, operates an integrated portfolio of businesses across the chain of food production. Through its proximity to key origination areas in North and South America, efficient production, balanced operations, and decentralized management structure, Bunge is well positioned to capitalize on growth in some of the world’s most promising food and agribusiness markets.