Golden Agri to sell Tianjin oilseeds unit to Louis Dreyfus Company Asia

GOLDEN Agri-Resources is selling a wholly owned oilseeds business in Tianjin to a subsidiary of Louis Dreyfus Company Asia.

The final consideration for the sale of Sinarmas Natural Resources Foodstuff (Technology) Tianjin to LDC (China) Trading Company was not specified, but Golden Agri, an oil palm producer, said that the unit had a registered capital of US$60 million.

The final consideration will be based on Sinarmas Natural Resources' initial enterprise value of US$111 million, its working capital and its financial statements at completion.

Sinarmas Natural Resources Foodstuff (Technology) Tianjin, with a registered capital of US$60 million, is a limited liability company established in 2009 in China with principal activities of oilseed crushing and vegetable oil refining. It owns and operates oilseeds crushing and refining facilities in Tianjin, on a land area of about 300,000 square metres.

In a filing with the Singapore Exchange, Golden Agri-Resources said that the proposed transfer is a "strategic option" to dispose its non-core oilseed asset and operations in Tianjin.