Transaction for majority stake of China Minzhong Food Corp from PT Indofood may not materialise

CHINA Minzhong Holdings Limited (CMHL), an investment vehicle linked to Lin Guo Rong, chief executive of vegetable processor China Minzhong Food Corporation (CMFC), has not yet entered into a definitive agreement with Indonesian conglomerate PT Indofood Sukses Makmur Tbk to acquire 347 million shares of CMFC.

In a statement on Wednesday, CMFC said that shareholders should note that there is no assurance that any definitive agreement between the two will be reached, or that the offer will materialise.

In December 2014, CMFC had announced a possible transaction by CMHL to acquire 347 million shares of the former at S$1.20 per share from PT Indofood Sukses Makmur.

This would represent approximately 52.94 per cent of CMFC's total number of shares.

Within a week of the announcement, CMFC's shares had soared about 23 per cent, before tapering down.