Singapore agri-food company Japfa on Wednesday, April 15, announced that it will sell a 25% stake in its dairy farming business in China to Meiji for US$254.4 million, reported Reuters.
“This… partnership will secure the supply of quality raw milk for Meiji’s downstream operations and provide a stable revenue stream for Japfa,” Chief Executive Officer Tan Yong Nang said.
The Singapore-listed firm intends to use proceeds from the deal to repay a US$253 million term loan facility, thus improving its leverage ratio and balance sheet.
Japfa added that its day-to-day operations have so far not been impacted by the coronavirus pandemic since it is involved in the provision of essential services by supplying protein foods.
“However, as this outbreak is an uprecedented event, the impact going forward cannot be reliably estimated,” the company stated.
Full Content: Reuters
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