Wilmar breaks into Myanmar's sugar market with new JV

It'll acquire a 55% stake.

In a release, Wilmar International Limited announced that its indirect wholly-owned subsidiary, Wilmar Sugar (Myanmar) Pte. Ltd.and Myanmar-based Great Wall Food Stuff Industry Company Limited have agreed to form a joint venture in Myanmar to produce and sell sugar and its by-products. Wilmar will hold a total effective interest of 55% in the Myanmar JV.

WSMPL and Great Wall have established a joint venture company in Myanmar called “Great Wall - Wilmar Holdings Limited”. Pursuant to a business acquisition agreement signed in respect of this transaction, JVCo shall acquire all the existing sugar-related business, mills and plants of Great Wall and its associates, which include two sugar mills with a total milling capacity of 4,000 metric tonnes of sugarcane per day and a total production capacity of 65,000 metric tonnes of sugar per year, a bio-ethanol plant and one organic compound fertilizer plant. 

Completion of the BAA will be carried out in 2 phases, subject to regulatory approvals, including those from the Myanmar Investment Commission, and fulfillment of other conditions precedent under the BAA. WSMPL’s funding of its investment in JVCo for this acquisition will be from internal sources. 

WSMPL’s investment into JVCo is not expected to have a material impact on the consolidated net tangible assets and earnings per share of the Wilmar Group for the current financial year ending 31 December 2014.