New Milestone for Wilmar and Tereos Partnership
29 Nov 2013 --- Further to the announcement dated 24 April 2013 by Tereos Internacional, Tereos and Wilmar International Limi ted wish to announce that following receipt of all regulatory approvals, they have formed a new joint venture, through their respective subsidiaries Syral China Investment (“Tereos Syral”) and Wilmar China New Investments Pte. Ltd. (“WCNI”), in a PRC- incorporated company named Liaoning Yihai Kerry Tereos Starch Technology Co., Ltd. (the “JV Company”).
The JV Company was formed following completion of the acquisition by Tereos Syral of 49% of the equity interest in the JV Company from WCNI and another former shareholder of the JV Company. Following this acquisition, WCNI’s equity interest in the JV Company has decreased from 85% to 51%.
The aggregate consideration of RMB208 million (R$ 7 5 million) for the acquisition by Tereos Syral for 49% of the equity interest in JV Company was based on the net asset valuation of the JV Company. The JV Company will engage in the operation of a corn starch facility in Tieling (Liaoning Province), in northern China. The corn starch facility has a current annual processing capacity of 700,000 tons of corn. The two partners have been actively developing a performance improvement and product diversification plan which will be implemented progressively over the next 18 months to reinforce the facility's cost and product competitiveness. This acquisition marks the second important step in the development of the major partnership between Tereos and Wilmar in the rapidly growing market for starch-based product in China.
The first industrial joint venture under the Wilmar-Tereos partnership involving the construction of a wheat starch facility in Dongguan, near Guangzhou, will be operational during the first half of 2014. This facility will have the capacity to process 500,000 tons of wheat to produce starch, glucose syrups and gluten.
