KUALA LUMPUR: US-based Tyson Foods, Inc will invest RM420mil in Malayan Flour Mills Bhd's vertically integrated poultry business.
MFM said in a filing to Bursa Malaysia, it is selling a 49% stake in Dindings Supreme Sdn Bhd to Tyson Foods under a strategic partnership which will add more supply flexibility for both companies. The transaction is subject to approval by MFM's shareholders.
Chris Langholz, International President of Tyson Foods said once completed, the poultry deal will optimise its existing Malaysia business and expand MFM’s poultry business.
“This partnership will add more supply flexibility for both companies in serving halal-certified poultry to consumers and customers in the country and across priority export markets, ” he said.
Tyson Foods Malaysia currently operates one plant and one innovation center. MFM’s vertically integrated poultry business includes feed mills, hatcheries, farms and processing facilities.
MFM managing director Teh Wee Chye welcomed Tyson Foods's partnership to expand MFM’s long-established poultry business.
“Tyson Foods is one of the world’s largest food production companies with a strong global manufacturing and distribution footprint. Malaysia is one of the key poultry markets in Southeast Asia, with a high per capita consumption of poultry.
“Together with Tyson Foods, we look forward to increasing our halal poultry product offerings in the country, especially in the further processed poultry segment, as well as exporting to demand markets with the help of Tyson Foods’ global network, ” Teh said.
Tyson Foods Asia-Pacific president Tan Sun said the group's global resources and robust innovation capabilities paired with MFM’s more than 30 years of expertise as a leading poultry player in the country, enable both companies to make halal-certified products more readily available and affordable.
In the statement, they said MFM’s gold standard in Halal certified poultry products complements Tyson Foods’ Malaysia business, which is also recognised as a leader in the country’s Halal food industry.
In FY20, Tyson Foods generated US$6bil in international sales, which included US export sales. Rabobank Singapore acted as the international financial advisor to MFM.
Tyson Foods is one of the world’s largest food companies and a recognized leader in protein.
In Malaysia, Tyson Foods operates Mac Food Services (Malaysia) Sdn Bhd which supplies halal further processed poultry and other protein solutions to modern trade under the “First Pride” brand and bespoke products to various quick service restaurants in Malaysia and export markets.
Under a shareholders' agreement, both parties will enter into a long term supply agreement between Mac Food and Dindings Supreme to support the domestic requirement of Mac Food for the Malaysian market for five years.
They will also enter into a long term grain supply agreement between Premier Grain Sdn Bhd, a 51% subsidiary of MFM, DSSB and Dindings Poultry Development Centre Sdn Bhd for the supply and sourcing of corn and/or soybean meals for a period of 10 years.