F&N acquires Sri Nona companies for RM60mil cash

KUALA LUMPUR: Fraser & Neave Holdings Bhd’s (F&N) wholly-owned subsidiary Awana Citra Sdn Bhd has proposed to acquire the entire equity interest in three companies under the Sri Nona group for RM60mil cash.

In a filing with Bursa Malaysia Tuesday, F&N said Awana Citra had on Dec 13 entered into a conditional share sale agreement with Siew Yun Sing and Tong Saw Man (vendors), in relation to the proposed acquisition.

Subject to the terms and conditions of the share sale agreement, the aggregate cash consideration for the Sri Nona Companies is up to RM60mil.

The three companies are Sri Nona Food Industries Sdn Bhd, Sri Nona Industries Sdn Bhd and Lee Shun Hing Sauce Industries Sdn Bhd.

“The purchase consideration was arrived at on a ‘willing-buyer willing-seller’ basis after taking into account, inter alia, the net asset value, brands and earnings of the Sri Nona Companies.

“Based on the unaudited financial statements of the Sri Nona Companies for the period ended June 30, 2020, the net asset value attributable to the sale shares was approximately RM21.4mil,” F&N said.

The proposed acquisition will be funded via the company’s internally generated funds and is expected to be completed in the first quarter of 2021.

The principal activities of the Sri Nona Companies are manufacture, distribution and sale of rice cakes (ketupat), condiments (oyster sauce and paste), beverages (ginger tea powder), desserts (pudding and jelly powder), jams and spreads under the “NONA” and “Lee Shun Hing” brands owned by the relevant Sri Nona Companies.

“The proposed acquisition is in line with F&N ambition to be a stable and sustainable food and beverage leader in Malaysia, with Halal food as our new pillar of growth.

“The investment will add an established Malaysian household food brand to F&N’s portfolio of renowned brands and will serve as a platform to build on and expand into more food segments,” F&N said.