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IOI Corp completed 70% stake sale in Loders to Bunge
02/03/2018New Straits Times

KUALA LUMPUR: IOI Corp Bhd has completed its 70 per cent stake sale in Loders Croklaan Group BV and its related businesses to US-listed Bunge Ltd for RM3.79 billion.

IOI had on September 12 last year signed a definitive share purchase agreement (SPA) with Koninklijke Bunge BV, a wholly-owned subsidiary of Bunge, for the 70 per cent stake sale for US$946 million. It comprised €297 million and US$595 million, subject to foreign exchange fluctuation.

In a filing with Bursa Malaysia yesterday, IOI said all the conditions precedent as set out in the SPA had been satisfied or waived in accordance with the terms of the SPA.

IOI had paid the initial sum of US$595 million plus €303.37 million (totalling RM3.79 billion) in accordance with the terms of the SPA.

IOI will continue to hold a 30 per cent stake in Loders.

As part of the transaction, for five years, Bunge will have the right to purchase the remaining interest in Loders from IOI, and IOI will have the right to sell its interest to Bunge.

"The company will release the relevant announcements in relation to the final disposal consideration and the adjustments made to the preliminary disposal consideration, as and when it is determined," said IOI.

In 2002, IOI had acquired the entire business of Loders from Unilever Plc and Unilever NV for RM814 million.

In a separate statement, Bunge said Loders will provide a comprehensive customer offering, from core products to specialties, for business-to-business customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service segments.

"We expect Loders to generate US$105 million of full-year earnings before interest, taxes, depreciation and amortisation in 2018, plus US$15 million in synergies.

"We also expect the transaction to be accretive to earnings on a cash basis this year. The enterprise will operate within Bunge's food and ingredients business as 'Bunge Loders Croklaan'," Bunge added.