DESMET Ballestra, a Belgian process engineer, is collaborating with Universiti Putra Malaysia (UPM) to find competitive and energy-efficient ways to produce specialty fats.
CB Industrial Product Holding Bhd through its subsidiary, Modipalm Engineering Sdn Bhd, has been awarded a RM53.927 million contract to build four continuous steriliser palm oil mills for the Wilmar Group’s four subsidiaries in Indonesia. The mills, each with a capacity of 30 tonne fresh fruit bunches (FFB) per hour, costs RM13.025 million individually. — Bernama
SINGAPORE: Singapore’s Wilmar International, the world’s largest listed palm oil firm, said yesterday it was keen to grow its sugar business by setting up operations in Indonesia and Brazil.
SINGAPORE: Mewah Group, a palm oil firm with refineries in Malaysia, is planning to raise as much as US$500 million (US$1 = RM3.22) in a Singapore initial public offering (IPO) for expansion, two sources involved in the IPO said yesterday.
The planned listing, which will result in new investors owning 12-20 per cent of Mewah’s enlarged share capital, is scheduled for the fourth quarter of this year, sources said. Credit Suisse and BNP Paribas are managing the offer, they added.
Mewah, whose main shareholders are Singaporean, owns three palm oil refineries in Malaysia and produces vegetable oil products include cooking oil, margarine and specialty fats used in ice cream, according to its website (www.mewahgroup.com). The refineries, namely; Ngo Chew Hong Oils & Fats (M) Sdn Bhd, Mewaholeo Industries Sdn Bhd and Mewah-Oils Sdn Bhd are located at Semenyih, Pasir Gudang and Pulau Indah.
The firm also has several sister firms in Singapore whose activities range from marketing Mewah products to providing transport and warehousing services. “The group has approximately US$2 billion turnover (and) the refineries have a combined output of about 2.5 million tons per annum,” a source familiar with Mewah said.
Mewah preferred to be described as a “Singapore-based group with refineries in Malaysia” rather than as a Malaysian firm, he added. – Reuters
UBS and Lazard advised CSR on the deal. Australia & New Zealand Banking Group advised Wilmar.
“This is positive news as it’ll help jump start their strategy to expand in the sugar business and (represents) the next growth driver for Wilmar,” said DBS Vickers analyst Ben Santoso. He expected the new business to see synergies from capitalising on Wilmar’s extensive distribution to China and Asia.
CIMB analyst Ivy Ng said the deal was positive in the medium term as it gave Wilmar knowledge to expand to other parts of Asia. “But in the short term, based on what they have so far it does not appear the acquisition will significantly increase their earnings,” she said. “In the longer term, it would be good if they can replicate the business in other parts of Asia like China, India and Indonesia, but you won’t see that tomorrow.”
CSR said the deal was expected to be completed by the last quarter of 2010, and is conditional on approval by Australia’s Foreign Investment Review Board. – Reuters