Guan Chong unit buys assets of US-based cocoa products processor for RM35m

PETALING JAYA: Guan Chong Bhd's (GCB) indirect subsidiary Carlyle Cocoa Co LLC is buying the assets of US-based cocoa products processors Cocoa Services, L.L.C. and Morgan Drive Associates, L.L.C for US$8.39 million (RM35.39 million).
GCB, which is involved in the manufacturing, marketing and promotion of cocoa related products sees the acquisition as a means to achieve organic expansion on its existing business operations, by providing value-added services of processing cocoa products for the end consumer market.
The sellers, each a New Jersey limited liability company, have filed a voluntary petition for bankruptcy commencing a case under chapter 11 in the United States Bankruptcy Court for the Southern District of New York.
The company said the purchase will be funded by internally generated funds (40%) and borrowings (60%).
GCB's share price was up three sen to close at RM1.59, with some 516,500 shares changing hands. It has a market capitalisation of RM759.88 million.