A company controlled by billionaire Anthoni Salim offered to acquire the rest of China Minzhong Food Corp. in a deal valuing the Chinese company at S$786 million ($584 million), helping the Indonesian tycoon expand a food empire spanning potato chips, instant noodles and cooking oil.
Marvellous Glory Holdings Ltd. offered S$1.20 in cash for each share in Singapore-listed China Minzhong Food, or 25 percent more the stock’s last closing price. The shares traded at S$1.125 as of 11:24 a.m. in Singapore. Investors can choose an alternative offer in a mixture of cash and exchangeable bonds, according to an exchange filing.
A takeout of the Chinese vegetable-growing and processing company would add to more than a dozen delistings in Singapore — with a combined market value of S$4.5 billion — in the first half of 2016 alone, according to data compiled by Bloomberg.
Salim has a net worth of $3.3 billion, according to the Bloomberg Billionaires Index. His First Pacific Co., through Jakarta-listed PT Indofood Sukses Makmur, owns 82.88 percent of China Minsheng Food. Salim has a combined direct and indirect interest of about 45.11% in First Pacific, the filing showed.
“Valuations have been beaten down so there is a lot of incentive to take them private,” said Jeremy Teong, an analyst at Phillip Securities Pte. in Singapore.
China Minzhong said the proposal would allow “greater control and management flexibility” in implementing “strategic initiatives,” according to the filing. The offer is contingent on the acquirer gaining acceptances for shares carrying more than 50 percent of voting rights, according to the document.