Petra Foods expected to acquire more regional brands

Better than growing current brands organically.

Flush with cash after receiving estimated net proceeds of US$164m from the sale of its Cocoa Ingredients division in FY13, Petra Foods could opt for a brand-buying spree, according to OCBC Investment Research.

"Though there is an arbitration to reduce the closing price by US$98m, the proceeds would still be a sizable war chest. We think Petra Foods is likely to acquire brands to penetrate further into regional markets rather than growing its existing brands organically," said OCBC.

The research firm said the strategy is nothing new to Petra Foods, and it could just repeat what it did to break into the Philippine market.

"Back in 2006, Petra Foods acquired the chocolate confectionery manufacturing plant and sales and distribution assets from Nestle Philippines’ Inc and its subsidiary. The key prizes are, in our opinion, the popular local brands “Knick Knacks” and “Goya” that jumpstarted Petra Foods’ penetration into the Philippines market."

Also Read

Yeo Hiap Seng raises Vitasoy stake to 4% with $22.5m share buy

Khoo family member buys additional 7 million shares in Zixin Group Holdings

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit