F&N Malaysia proposes RM488m privatisation of Cocoaland

FRASER & Neave Bhd (F&NHB), a subsidiary of mainboard-listed beverage company Fraser & Neave : F99 0%, has proposed to acquire the entire equity interest of Cocoaland which it does not already hold for RM488 million (S$153 million), or RM1.50 a share.

F&NHB said in a bourse filing after trading hours on Friday (Jun 3) that the proposed privatisation of Cocoaland will involve acquiring 325 million of the candy maker’s shares held by scheme shareholders, representing 72.3 per cent of share capital.

F&NHB currently owns the remaining 27.7 per cent of Cocoaland’s share capital.

The proposed privatisation is to take place via members’ scheme of arrangement, and Cocoaland is to respond to the proposal no later than 5pm on Jun 16.

F&NHB also said in the filing that it has received an irrevocable and unconditional undertaking from the shareholders of Leverage Success, a major shareholder of Cocoaland, to vote in favour of the scheme. Leverage Success holds 183 million shares in Cocoaland, representing 40.7 per cent equity interest, as at the time of announcement.

F&NHB said the proposal is in line with its ambition to be a “stable and sustainable food and beverage leader in Asean, with halal packaged food as its fourth pillar of growth”. It believes the addition of Cocoaland into its group of companies will also strengthen the group’s expansion into overseas markets.

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F&NHB expects the proposed privatisation to be completed by the fourth quarter of 2022. It has appointed AmInvestment Bank as principal adviser for the deal.

F&N shares closed 0.7 per cent or S$0.01 higher at S$1.37, before the announcement.