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CP Foods seeks $1.1 billion capital increase

The proceeds of the refinancing will mainly be used to pay back loans in Thailand and overseas. 

Charoen Pokphand Foods (CP Foods) said it plans a more than THB 38.7 billion (€1 billion/$1.1 billion) capital increase to adjust its financial portfolio and to facilitate a loan payment.

Adirek Sripratak, chairman of CP Foods, said the company’s board of directors will seek approval from shareholders. 

The plan sees a capital increase at the ratio of five existing common shares to one new common share at the price of THB 25 (€0.66/$0.74) per share.

The capital increase will help strengthen the company’s financial structure, the group said. 

CP Foods expects to get the fresh capital in early August this year. It will be used for paying loans in Thailand and overseas. 

The group said it targets a sale growth of 8 to 10 percent from last year, mainly from its overseas business, where it sees further expansion opportunities. 

"It is expected that overseas business sale will increase from 64 percent to 70 percent of the company’s total sales in the next five years," it said. 

In general, due to the "current world economic situation," the group is focusing on innovation to reduce cost, increasing production efficiency and strengthen competitiveness together with human resource development based on strong financials to achieve sustainable growth, it said. 

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