Japfa set to sell stake in Chinese dairy business to Meiji
Singapore agri-food company Japfa Ltd announced on 15 April that it will sell a 25 percent stake in its dairy farming business in China to Meiji for $254.4 million.
16 April 2020
1 minute read
Reuters reports that this move marks a further expansion of the Japanese group’s footprint in the Chinese dairy industry.
"This...partnership will secure the supply of quality raw milk for Meiji’s downstream operations and provide a stable revenue stream for Japfa," Chief Executive Officer Tan Yong Nang said.
The Singapore-listed firm intends to use proceeds from the deal to repay a $253 million term loan facility, thus improving its leverage ratio and balance sheet.
Japfa reports that its day-to-day operations have not been impacted by the coronavirus pandemic since it is involved in the provision of essential services.
"However, as this outbreak is an uprecedented event, the impact going forward cannot be reliably estimated," the company said.
Credit Suisse (Singapore) Limited is the exclusive financial advisor to Japfa for the deal.
Read more about this story here.
