Fraser & Neave To Acquire And Privatise Cocoaland For RM488 Million

Fraser & Neave has proposed to Cocoaland which it holds a 27.66% stake, on a Privatisation that would result in the delisting of Cocoaland from the Main Market of Bursa Securities.

The Proposed Privatisation is in consideration of the acquisition of the remaining share at RM1.50, based on 325,431,068 Cocoaland Shares held by shareholders representing approximately 72.34% of the share capital which is approximately RM488,146,602 that will be settled in cash.

Upon which F&NHB will choose not to maintain the listing status of Cocoaland and accordingly, upon completion of the proposed privatisation and subject to Bursa Securities’ approval, Cocoaland Shares will be delisted from the Main Market of Bursa Securities.

F&NHB has confirmed that the Proposed Privatisation would not fail due to insufficient financial capability to pay the total cash consideration. F&NHB intends to finance the Proposed Privatisation via bank borrowings. AmInvestment Bank is satisfied that the Proposed Privatisation would not fail due to insufficient financial capability of F&NHB and that every Scheme Shareholder will be paid the cash consideration in full.

Cocoaland’s audited consolidated adjusted earnings before interest, taxation, depreciation and amortization (“EBITDA”) of RM32.80 million and RM33.53 million for the financial year ended (“FYE”) 31 December 2020 and 2021 respectively. This implies an enterprise value to EBITDA ratio of 18.47 times and 17.74 times for the FYE 31 December 2020 and 2021
respectively.

The Proposed Privatisation is in line with F&NHB’s ambition to be a stable and sustainable food and beverage leader in ASEAN, with halal packaged food as its fourth pillar of growth. The investment will add established Malaysian confectionery and snack brands to F&NHB’s portfolio of renowned brands, and at the same time serves as a platform to build on and expand into other packaged food segments. F&NHB believes that the addition of Cocoaland into the F&NHB group
will also enhance the group’s expansion in the overseas markets.

Cocoaland was incorporated in Malaysia on 6 June 2000 as a public limited company. Cocoalandwas listed on the Second Board of Bursa Securities on 18 January 2005 and later transferred to the Main Market of Bursa Securities on 18 July 2006. The principal activity of Cocoaland is investment holding. Through its subsidiaries, Cocoaland is
involved in activities such as manufacturing and trading all kinds of processed and preserved foods and fruits. It is also involved in the wholesale and retail of processed and preserved foods as well as wholesale, import, and export of gummies and other products.

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