Monday, October 3, 2011

Huat Lai Resources to launch takeover of TPC

KUALA LUMPUR: HUAT LAI RESOURCES BHD [] plans to launch a takeover offer of poultry company TPC PLUS BHD [] after it acquires a 33.65% stake in TPC from London Biscuit Bhd.

Huat Lai said on Monday, Oct 3 it had signed a sale and purchase agreement with London Biscuit to acquire the stake, comprising 26.91 million TPC shares, for RM8.075 million or an average 30 sen a share.

'As one of the bigger egg producers in the country, Huat Lai is one of the major producers of table eggs and the board of directors views the proposed acquisition as a good synergy for both companies. It enables the group to enlarge its customer base and remain more competitive,' it said.

London Biscuits makes cake, candy, wafer and assorted snack confectioneries and it is based in Ulu Tiram, Johor.

Huat Lai said TPC's primary business is table eggs for industrial, commercial and consumer use.'' The daily production of TPC is about 500,000 eggs.

It said upon completion of the proposed acquisition, its shareholding in TPC would be about 33.65% and under Section 9, Part III of the'' Malaysian Code on Take-Overs and Mergers 2010 under the Capital Markets and Services'' Act 2007, it would'' make a takeover offer to TPC shareholders.

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