U.K.'s Tate & Lyle to sell its Vietnamese sugar interests to Vietnam's TH Milk Food Joint Stock for £33M, in addition to its share of the value of working capital and net cash to be retained in the business
April 20, 2011
– Tate & Lyle PLC (“Tate & Lyle”) 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.
About Tate & Lyle:
Tate & Lyle is a global provider of ingredients and solutions to the food, beverage and other industries, operating from over 30 production facilities around the world.
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.
Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2010, Tate & Lyle employed 5,666 people in its subsidiaries and joint ventures, and sales totalled £3.50 billion. http://www.tateandlyle.com.
SPLENDA® is a trademark of McNeil Nutritionals, LLC
About TH Milk:
TH Milk is a Vietnamese joint stock company whose business activities include sale, purchase and processing of milk, soya milk and milk products, fruit juice and drinking products and the raising and breeding of cows.