Two Thai firms to invest in Sino Grandness

Mainboard-listed Sino Grandness Food Industry Group announced on Thursday that Thai conglomerates Thoresen Thai Agencies (TTA) and PM Group will take stakes of 9 per cent and 3.77 per cent respectively in the company through a private placement of newly issued shares.

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Two Thai firms to invest in Sino Grandness

Malminderjit Singh
03 October 2014

Mainboard-listed Sino Grandness Food Industry Group announced on Thursday that Thai conglomerates Thoresen Thai Agencies (TTA) and PM Group will take stakes of 9 per cent and 3.77 per cent respectively in the company through a private placement of newly issued shares.

The Shenzhen-based producer and distributor of food and beverage (F&B) products said that it had entered into two subscription agreements with the Thai entities to issue a total of 86 million new ordinary shares of the company to both subscribers at the placement price of S$0.61 per share.

Upon completion of the placement exercise, TTA shall become the second-largest shareholder of Sino Grandness with a 9 per cent stake and one board seat. Prayudh Mahagitsiri, honorary chairman of TTA and the founder and chairman of PM Group, who is known as “the Coffee King of Thailand”, shall be appointed as honorary chairman of Sino Grandness.

“The F&B industry in China continues to fuel exciting growth and offers growth opportunities for companies like Sino Grandness that has established a strong competitive edge. I am particularly impressed with Sino Grandness’ beverage products positioning targeting increasingly health-conscious consumers through offering juices with mid-high juice content which are perceived to be more nutritional and comprising unique fruits such as loquats and hawthorns,” Mr Mahagitsiri explained.

The deal is a strategic investment for both investor groups.

“We are excited about this, our latest transaction, as it will reinforce our new vision as to be the most trusted Asian Investment Group by 2020,” said Chalermchai Mahagitsiri, president & CEO of TTA.

“This deal represents our first step into the food and beverage industry sector, which has a huge growth potential. Sino Grandness has demonstrated cumulative annual growth rates of 40 per cent since 2008, and we foresee the company continuing to deliver stable financial performance.”

Sino Grandness explained that the transaction is not only to add equity funding to the high-growth company, but also to create a new partnership aiming towards new product developments as well as solid expansion into the South-east Asian market.

“Mr Prayudh Mahagitsiri is a highly reputable investor with excellent track record of investing in and managing various businesses, particularly food and beverage business, over the past few decades. We believe his massive experience will tremendously benefit our company going forward,” Huang Yupeng, chairman and CEO of Sino Grandness, revealed.

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