Betagro to go public

21-09-2007 | |
Betagro to go public

Betagro, one of Thailand’s major agricultural groups has announced its plans to list on the Stock Exchange of Thailand next year to help raise funds for the expansion of its food and farm businesses.

If Betagro files this year for a listing on the SET next
year it will be eligible to have its corporate tax rate of 25% instead of the
normal 30% rate.

Apart from this objective group chief executive Vanus
Taepaisitphongse said listing on the SET also was to increase Betagro’s
professionalism as a major specialist in the chicken and pork
business.

Currently, only two chicken producers are traded publicly,
Charoen Pokphand
Foods
 and GFPT Plc.

Betagro recently
celebrated its 40 years of existence. During these decades the company focused
mainly in upstream industries – producing feeds, farming, and making
food.

“Now we’ll take another step forward – focusing more on downstream
businesses, high-standard ready-to-eat meals and effective marketing and
distribution,” Vanus said.

The Betagro Group comprises 29 wholly owned
and joint-venture companies in the agricultural and food industry.

The
amount of funds to be raised was not revealed but part of the capital would
finance investment projects worth 3.1 billion baht (€ 69.6 million) in 2008 and
2009, said chief operating officer Vasit Taepaisitphongse.

The new
investments, mainly to build more chicken-processing and food-production plants,
would ensure the company meets its annual revenue growth projection of 10% to
15% over the next five years from around 33 billion baht (€ 740m) this
year.

The poultry business and the regional and feed business would
continue to be the major contributors of 40% each to total revenue.

After
the listing and brand-building efforts, Vanus said Betagro would have a clear
position and should not be compared with the giant CP
Group.

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