Thailand's CP Foods sells 25% of CP Pokphand to Japanese giant Itochu

Japan’s third-largest trading house, Itochu Corp. will snap up a 25 percent stake in Hong Kong-listed CP Pokphand, owned by Charoen Pokphand Foods (CP Foods), in a deal worth THB 27.4 billion (€639.1 million/$860.9 million).

CP Foods said in a statement  parent Charoen Pokphand Group, owned by Thai billionaire Dhanin Chearavanont, will hold 50.43 percent of Hong Kong-listed CP Pokphand after the sale.

Proceeds from the sale will be used mainly to repay debt, the company said.

Adirek Sripratak, CEO of CP Foods, in March said CP Foods planned to reduce its holding of CP Pokphand to help lower its net debt to equity ratio to below 1 over the next three years, reported Reuters.

Bloomberg