Tate & Lyle Disposes of Vietnamese Sugar Interests
Tate & Lyle will receive a cash consideration of £33m (at current exchange rates) in addition to Tate & Lyle’s share of the value of working capital and net cash to be retained in the business.
4/20/2011 --- Tate & Lyle PLC has entered into a conditional contract to dispose of its Vietnamese sugar interests to TH Milk Food Joint Stock Company, a company based in Vietnam. On completion, Tate & Lyle will receive a cash consideration of £33m (at current exchange rates) in addition to Tate & Lyle’s share of the value of working capital and net cash to be retained in the business.
The transaction is subject to certain conditions, including Vietnamese government approvals and the potential exercise of pre-emption rights by Tate & Lyle’s partner in the business, Mitr Phol Saturn Investments Limited. It is expected that the transaction will complete in the first half of the current financial year.
The move comes as Tate & Lyle increases its focus on speciality food ingredients. The company sold its molasses business in November 2010. In May 2010, Tate & Lyle announced a refocus, whereby the Specialty Food Ingredients business would be the key focus for investment and growth. In October 2010, Tate & Lyle announced the establishment of a new Commercial and Food Innovation Center in the US (Chicago).
Tate & Lyle operates through two global business units, Speciality Food Ingredients and Bulk Ingredients, supported by Innovation and Commercial Development. The Group's strategy is to become the leading global provider of Speciality Food Ingredients through a disciplined focus on growth, and by driving the Bulk Ingredients business for sustained cash generation to fuel this growth.
Speciality Food Ingredients include starch-based speciality ingredients (corn-based speciality starches and sweeteners), SPLENDA Sucralose (a high intensity sweetener made from sugar) and Food Systems which provides blended ingredient solutions. Bulk Ingredients include corn-based bulk sweeteners, industrial starches and fermentation products (primarily acidulants). The co-products from both divisions are primarily sold as animal feed.
