Bakery Company Buys into Egg Production

by 5m Editor
3 February 2010, at 6:27am

MALAYSIA - London Biscuits is to buy a 32 per cent stake in egg company, TPC Plus.

London Biscuits Bhd (7126) has signed a deal to buy 32 per cent of poultry firm TPC Plus Bhd for 7.6 million-ringgits (MYR) cash to secure egg supply and expand its distribution network, according to Business Times of Malaysia.

In a statement, chief executive officer, Datuk Seri Liew Yew Chung, said: "London Biscuits will benefit from cost-savings and consistent supply of quality eggs as well as a platform to develop and market new product varieties."

TPC, on its part, will be gaining a major client.

Main Market-listed TPC's principal business activity is poultry farming. It also makes animal feed.

London Biscuits will use internal funds to finance the deal, which still needs financial and legal due diligence.

London Biscuits is one of Southeast Asia's biggest cake and confectionery makers. It is expanding production capacity for its range of products. The expansion will require a significant increase in ingredients such as eggs. In addition, the company can leverage on TPC's trade distribution channel of major hypermarkets, supermarkets and grocery stores.