Following the entry of Joyday Ice Cream into the Indonesian market, on November 29, Yili Group announced that its wholly-owned subsidiary, Jingang Holdings, had acquired 96.46% of CHOMTHANA, a Thai ice cream and frozen food distributor, for an initial consideration of $8.56 million to "enter the Thai market and radiate the surrounding markets". It is understood that Indonesia and Thailand are the first and second largest ice cream markets in Southeast Asia.
Acquisition target business eradiates neighbouring 13 countries
According to the announcement of Yili Group, its wholly-owned subsidiary, Hong Kong Jingang Holdings Limited intends to acquire 96.46% of Thailand's THOMTHANA COMPANY LIMITED from four companies and become the new controlling shareholder of the acquisition target. The delivery time is no later than 30 June 2019. Taking into account the strategic value of the project for the company to enter the Southeast Asian market, and the project is a bidding project, Yili decided that purchase price is $8.56 million.
According to the data, CHOMTHANA Company was established in 1978, mainly engaged in ice cream production and refrigerated food transportation business. As of 30 June 2018, CHOMTHANA had total assets of 34.59 million dollars, net assets of 21.97 million dollars, operating income of 18.24 million dollars, net profit of 900,000 dollars and after deduction net profit of 940,000 dollars (unaudited). In 2017, the company had revenue of 34.38 million dollars, net profit of 3.23 million dollars and net assets of 20.39 million dollars.
According to Yili Group, CHOMTHANA has a certain scale of production, relatively perfect industrial chain layout, abundant cold chain storage facilities, and its own cold chain logistics system basically covers all parts of Thailand, which is conducive to help Yili enter the Thai market. Thailand is the second largest ice cream market in Southeast Asia after Indonesia. Besides its local business, the target company also exports ice cream to 13 neighboring countries. The company's acquisition of the target company's equity into the Thai market, can help to open up the Southeast Asian market, in line with the needs of the company's strategic development. "This transaction will lead to changes in the scope of the company's consolidated statements, which is expected to bring some revenue and profit contribution to the company in the future."
Yili ice cream has entered the Indonesian Market
Before the Thai ice cream market was laid out, 11 Joyday Ice Creams from Yili entered the Indonesian market in October 2018 and are expected to cover more than 20 cities by the end of this year.
In recent years, Yili has gradually accelerated the distribution of overseas investment. In November 2014, the Yili Oceania production base was unveiled in New Zealand, covering dairy scientific research, production, deep processing, packaging and other fields, with an overall investment of up to 3 billion yuan.
On March 25, 2017, the second phase project of Yili Oceania Production Base was unveiled in Auckland, New Zealand. It is mainly used in the deep processing project of 16.2 tons of functional milk protein per year, 80,000 tons of UHT milk per year, 56,000 tons of full milk powder per year and 30,000 tons of infant milk powder packaging project per year.
