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Leong Hup Expands its Poultry Business

by 5m Editor
14 October 2009, at 10:11am

MALAYSIA - Leong Hup Holdings Bhd is set to acquire poultry company, Ladang Ternakan Maju.

Leong Hup Holdings Bhd (LHH) is expanding its core businesses via the proposed raising of its stake in plantation firm, Alam Muhibah Sdn Bhd (AMSB) and the acquisition of a poultry firm, Ladang Ternakan Maju Sdn Bhd (LTM) for a total of 34.05 million ringgit (MYR), according to Malaysia'a The Edge.

LHH is proposing to acquire LTM's entire paid-up capital of 5.09 million shares at MYR1 each from Amnah Ibrahim, Rahmat Ibrahim and Tan Sri Lau Tuang Nguang for MYR 12.75 million via the issue of 12.14 million shares in LHH at an issue price of MYR1.05 each.

LHH said with LTM as a new subsidiary, the group was expected to expand its production of day-old chicks from its current output of about 124 million birds to about 134 million birds per annum and broiler chickens from about 38 million birds to about 47 million birds.

It said the acquisition would further strengthen the LHH group's position as one of the largest integrated poultry farm and hatchery operators in Malaysia.

For the year ended 31 January 2009, LTM's consolidated NA and net profit amounted to MYR 12.6 million and MYR 1.05 million, respectively.