Cocoaland to present F&N takeover offer to shareholders

KUALA LUMPUR (June 15): The board of directors of Cocoaland Holdings Bhd will present a takeover offer from Fraser & Neave Holdings Bhd (F&N) to shareholders for consideration after taking into account the preliminary views of its independent adviser, Malacca Securities Sdn Bhd, Cocoaland said in a bourse filing.

On June 3, F&N said it proposed to privatise its 27.66%-owned associate Cocoaland by buying the remaining Cocoaland shares it did not own at RM1.50 each in a move which would help F&N expand into other packaged-food segments and grow the buyer's overseas markets.

It proposed to pay RM488.15 million cash for the 325.43 million Cocoaland shares not owned by it, which represented 72.34% of Cocoaland's share capital. F&N is expected to fund the proposed privatisation via bank borrowings.

F&N gave the board of Cocoaland no later than 5pm on June 17, 2022 to revert with its decision on whether to put forward the proposed privatisation to Cocoaland's shareholders for consideration.

"It is the intention of F&N not to maintain the listing status of Cocoaland and accordingly, upon completion of the proposed privatisation and subject to Bursa Securities' approval, Cocoaland shares will be delisted from the Main Market of Bursa Securities," F&N said.

Shares in F&N finished 24 sen or 1.21% higher at RM20.12, giving it a market capitalisation of RM7.38 billion.

Cocoaland closed one sen or 0.68% higher at RM1.47, valuing the candy manufacturer at RM672.67 million.