Thai food manufacturer Charoen Pokphand Foods (CPF) plans to acquire 83% stake in Russia Baltic Pork Invest (RBPI) from Capman Russian Fund in a deal estimated to be worth THB3.15bn ($101.2m).
RBPI is a large-scale grain and pork producer in Kaliningrad region of Russia and also has operations in Nizhny Novgorod and Penza in the west. The company plans to expand its operations to mainland Russia. In 2012, RBPI reported net profit of THB343m ($11.02m) and sales of THB1.39bn ($44.6m).
CPF Investment (CPFI), a subsidiary of CPF, will acquire the shares in the third quarter of this year, reported Bangkok Post.
The acquisition is a part of CPF's strategy to expand its presence in food segment in Russia. This investment allows the company to cater to the demand for meat in the country and further expand into downstream food business by investing in a new product development.
