KUALA LUMPUR: BCM Alliance Bhd is diversifying into the dairy business segment via the proposed acquisition of a controlling 51% stake in Foodict Maker Sdn Bhd, Malaysia’s main distributor of China’s largest dairy player.
A filing with Bursa Malaysia shows that BCM has entered into a letter of intent for the acquisition of new and existing shares, representing 25% and 26% of the enlarged equity interest in Foodict respectively.
Foodict is the main distributor of Yili’s products in Malaysia. Yili is China’s largest dairy company and offers the most comprehensive range of products such as yogurt, ice cream, liquid milk, milk beverage, milk powder, health drinks and cheese. It is also listed on the Shanghai Stock Exchange, with a market capitalisation of 174 billion renminbi (RM102 billion).
Besides distributing Yili’s products, Foodict is also engaged in the sale and distribution of health food and supplements, hair and body care products.
BCM Alliance managing director Liaw Chong Lin said the exercise marks the beginning of its investment into non-core areas. The entry into the fast-moving consumer goods sector is in line with the management’s strategies to grow its recurring income and diversify its revenue streams.
“Yili has vast growth potential moving forward and the company intends to go big into the Malaysian dairy market, supported by its financial strength. This is a positive catalyst for Foodict given its strong association with Yili. Yili will provide the full support for the products’ market entry and marketing efforts in Malaysia. Essentially, the more Yili grows, the more Foodict will grow as well,” Liaw said in a statement.
