Ko Kongfeng, Chairman and President of Fengyi International, said that the acquisition is at a time when the group plans to increase investment in the Nigerian palm oil industry.
Group issued an announcement on the Singapore Exchange on Wednesday (June 18) stating that once the acquisition transaction is completed, Fengyi Group will hold 100% of the equity of PZ Fengyi.
He said: "Nigeria has a strong market demographic structure of over 200 million consumers, providing a significant opportunity for growth in the local food and nutrition sectors. Given the large and growing population, coupled with the right to grow palm trees, we are optimistic about the long-term potential of the Nigerian palm oil industry."
The statement also pointed out that the Group plans to continue to develop upstream palm plantations and downstream businesses in Nigeria. “As a global industry leader, Wingyi Group is fully capable of investing and seizing these opportunities after the transaction is completed.”Wilmar International acquired a 50% stake in Nigerian palm oil business PZ Wilmar from joint venture partner British manufacturer PZ Cussons for US$70 million (approximately SGD 89.85 million).
As of 4:20 pm on Wednesday, Fengyi International's share price fell 2.33% to 2.94 yuan.
TheGroup said the acquisition is not expected to have a substantial impact on employees or operations. However, relevant approvals are required before the transaction is completed, and the acquisition is expected to be completed in the last quarter of this year.