Guan Chong Bhd, the Malaysian cocoa processor pursuing a secondary listing in Singapore, is considering selling a stake to another company instead, said four people with knowledge of the matter.

The Pasir Gudang, Johor-based company has been approached by suitors, one of the people said, asking not to be identified as the deliberations are private. Guan Chong will probably scrap the planned share sale in Singapore if it reaches a deal, the person said, without identifying potential buyers.

Guan Chong shares have jumped 11 percent in Kuala Lumpur trading since April 9, when the company said it planned to sell stock in Singapore, bringing its market value to RM988 million (US$310 million). Guan Chong is seeking to sell a stake of 20 percent to 30 percent to fund expansion, the person said.

Chief Executive Officer Tay Hoe Lian is traveling and unavailable to comment, said a person who answered the phone at the company's head office yesterday. He didn't immediately respond to an e-mail seeking comment.

The company plans to increase its production capacity and sees acquisitions and overseas expansion as key sources of growth, according to a prospectus filed with the Monetary Authority of Singapore on June 28.

Guan Chong, which counts Mars Inc and South Korea's Lotte Group among its customers, reported net income of RM31.3 million for the quarter ending March 31, up from RM30.1 million a year earlier. -- Bloomberg