KUALA LUMPUR: CAB Cakaran
Corp Bhd has via its wholly-owned subsidiary CAB Cakaran Sdn Bhd entered into a conditional share purchase agreement to acquire the entire 100% equity interest or 9.19 million shares in an animal feed manufacturer for RM231mil.
In a filing with the stock exchange, the poultry farming group said it had entered into the purchase deal with Cargill Holdings (Malaysia) Sdn Bhd to acquire Cargill Feed Sdn Bhd, which produces a range of commercial compound feed for various livestock and aqua species.
According to the statement, Cargill Feed's manufacturing operations are based in Westport, Butterworth, Melaka and Sabah with a total capacity of approximately 400,000 metric tonnes per year.
In its most recently concluded financial year ended May 31, 2025, the company registered a profit after tax of RM13.78mil on revenue of RM390.96mil.
CAB Cakaran said the proposed acquisition will enhance its control over a source of animal feeds, which is critical to its poultry production.
"By internalising feed manufacturing, CAB Group aims to improve feed quality consistency, reduce reliance on external suppliers, and mitigate risks related to raw material price fluctuations.
"This vertical integration will support the group's existing farming operations and enhance production planning," it said.
Based on management's estimates, the group said the purchase would be funded via bank borrowings of RM207.9mil and internally generated funds of RM23.1mil.
