Cocoaland: First Pacific Company needs more time for due diligence

Hong Kong / CN. (fpl) On 29 May 2015, First Pacific Company Limited made an indicative, non-binding and conditional proposal to Cocoaland Holdings Berhad to acquire all the business and undertaking, including all the assets and liabilities, of Cocoaland for a total cash consideration of 463.32 million MYR (approximately 991.47 million HKD or 127.11 million USD). The Purchase Consideration is equivalent to 2.70 MYR (approximately 5.78 HKD or 0.74 USD) per ordinary share of 0.50 MYR (approximately 1.07 HKS or 0.14 USD) each in Cocoaland. Cocoaland has its shares listed and traded on Bursa Malaysia.

It is the intention that First Pacific will undertake the Proposal through a special purpose vehicle. The Liew Group will be an equity investor in the Proposed Acquiror, alongside the Company, on terms to be agreed upon by the Company and the Liew Group.

On 02 June 2015, the board of directors of Cocoaland, after careful deliberation of the Proposal, has agreed to enter into discussions in relation to the Proposal. The Proposed Acquisition represents an opportunity for the Group to continue its strategy in building a leading Asia-Pacific consumer food products company.

The exclusivity period referred to in this announcement has been extended at the request of the Company, with the agreement of Cocoaland, to facilitate the completion of the due diligence exercise in relation to Cocoaland and its subsidiaries and the finalization of detailed legal documentation in relation to the Proposal. The last day of the exclusivity period has been extended to 31 July 2015.

Cocoaland was established in 1984 and it is listed on Bursa Malaysia. Cocoaland is principally engaged in the manufacturing of sugar confectionery under brands such as Lot 100 in pastilles, gums, jellies and chews and Koko Jelly in chocolate confectionery. Cocoaland also produces soft drinks, biscuits and various other types of packaged food. Cocoaland’s presence extends beyond Malaysia to more than 30 countries including Australia, the US, Canada, Hong Kong, Japan, the Philippines and Singapore as well as many others in Europe and the Middle East (Image Source: Everjean).