The position that counts

WHILE Fraser & Neave Holdings Bhd’s plan to take up a 23% stake in Cocoaland Holdings Bhd has drawn attention because it’s the latest in a series of share acquisitions involving listed food players, there’s another aspect of the F&N-Cocoaland deal that deserves some discussion as well.

In separate announcements to Bursa Malaysia on Thursday, the two Main Market companies disclosed that the agreement for F&N’s proposed subscription of new Cocoaland shares covers board representation. One of the conditions is that F&N is entitled to nominate two persons to sit on the Cocoaland board, including one as an executive director.