Thai giant CP Foods takes over CPP for $2.12 billion

Thai agribusiness giant Charoen Pokphand Foods (CP Foods) is acquiring themajority of shares in the feed producer C.P. Pokphand (CPP).

The deal is valued at around THB 66.3 billion (€1.6billion/$2.1 billion).

The cash and share transaction will see CP Foods -- which operates aquaculture feed and farms in Thailand -- acquire 18.79 billionshares in Hong Kong-listed CPP for HKD $0.9 (THB 3.53/ €0.08/$0.11) per share.

This corresponds to around 88 percent of CPP's share capital.

However, the final stake could be somewhat smaller or larger depending onwhether some of the shareholders and management exercise options to issue newshares.