Golden Agri-Resources, a producer of crude palm oil and palm kernel, on Monday said it would sell its oilseeds business in Tianjin to a unit of Louis Dreyfus Company (LDC) Asia, the international agricultural trader.
Golden Agri did not disclose the financial details for the sale of Sinarmas Natural Resources Foodstuff (Technology) Tianjin to LDC (China) but it said that the unit had a registered capital of US$60 million.
The final consideration will be based on Sinarmas Natural Resources' initial enterprise value of US$111 million, its working capital and its financial statements at completion, Golden Agri said in a regulatory filing.
Golden Agri-Resources said that the proposed transfer is a "strategic option" to dispose its non-core oilseed asset and operations in Tianjin.
Sinarmas Natural Resources is a limited liability company established in 2009 in China with principal activities of oilseed crushing and vegetable oil refining.
The 166-year-old LDC is one of the small group of trading houses dominating flows of grains and other agricultural commodities. It is part of the so-called 'ABCD' quartet of global grain trading giants, which also includes Archer Daniels Midland, Bunge Ltd and Cargill.
Shares in Golden Agri were down 1.3 percent to S$0.37 on the Singapore Exchange.
