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Insiders are selling for a reason they know but not the retail investors.
To feed the shark.
Aeonfcuks ( Date: 02-Jul-2024 11:12) Posted:
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They just have the strategic partnership is for the Group to work with Ikhlas Capital to develop and expand its business in Southeast Asia and South Asia.
likely going downwards, stay safe.
To lose money?
Tracer63 ( Date: 25-Jun-2024 08:51) Posted:
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Load up
Nazir Razak' s Ikhlas Capital investing up to US$40 million in Food Empire
Proceeds from the new strategic partnership with Ikhlas Capital and proposed note issuance will be used to drive Food Empire&rsquo s capital expenditures
FOOD and beverage manufacturer Food Empire signed a non-binding term sheet to issue Asean private equity fund manager Ikhlas Capital Singapore up to US$40 million in redeemable exchangeable notes.
Ikhlas Capital is licensed by the Monetary Authority of Singapore with on-ground presence in Singapore, Kuala Lumpur, Jakarta and Manila.
The fund manager focuses on growth, transformation and cross-border value creation.
Ikhlas Capital&rsquo s investment will be made into a special purpose vehicle (SPV) that is wholly owned by Food Empire.
It will come with the option to hold a portfolio of business operations, including Food Empire&rsquo s South-east Asian and South Asian businesses.
On Monday (Jun 24), the mainboard-listed group said it intends to expand its business in these regions through its partnership with Ikhlas Capital.
As Food Empire&rsquo s strategic investor, Ikhlas Capital will inject an initial US$40 million capital in the SPV via a five-year redeemable exchangeable note, and a 5.5 per cent annual interest based on terms and structures to be finalised in a definitive agreement.
The deal will give Ikhlas Capital the right, but not obligation, to exchange the notes into new Food Empire shares at S$1.09 apiece.
Proceeds from its new strategic partnership and proposed note issuance will be used to drive Food Empire&rsquo s capital expenditures, as well as mergers and acquisitions in South-east Asia and South Asia.
&ldquo The board believes that beyond capital injection, Ikhlas Capital&rsquo s local presence, knowledge and network in South-east Asia will help the group further accelerate growth and scale in South-east Asia and internationally,&rdquo said Food Empire.
It also highlighted Ikhlas Capital&rsquo s founding partners as &ldquo well-known Asean professionals who have spent a combined total of more than 100 years of their careers in the region, and are highly recognised leaders in their respective professional fields and countries&rdquo .
Among the co-founders of Ikhlas Capital is Nazir Razak, younger brother of former Malaysian prime minister Najib Razak.
Prior to co-founding the private equity fund manager, Nazir served as CIMB&rsquo s chairman from 2014 to 2018, after helming the Malaysian retail banking company as its group chief executive from 1999 to 2014.
Other co-founders include CDL Hospitality Trusts director Kenny Kim former Indonesian minister of trade Gita Wirjawan and Cesar Purisima, who served as the Philippines&rsquo secretary of finance during Benigno S Aquino III&rsquo s time as president until 2016.
This counter has been dropping from $1.20+ to a recent low of $1.00.
The chart looks ripe for a rebound.
A case of selling on rumours and buying on facts?
ENTRY OF NON-BINDING TERM SHEET WITH IKHLAS CAPITAL IN RELATION TO STRATEGIC PARTNERSHIP AND REDEEMABLE EXCHANGEABLE NOTE 1. INTRODUCTION The Board of Directors of Food Empire Holdings Limited (the &ldquo Company&rdquo , together with its subsidiaries, the &ldquo Group&rdquo ) is pleased to announce that the Company has on 21 June 2024 entered into a non-binding term sheet (the &ldquo Term Sheet&rdquo ) with Ikhlas Capital Singapore Pte. Ltd. (the &ldquo Strategic Investor&rdquo or &ldquo Ikhlas Capital&rdquo and together with the Company, the &ldquo Parties&rdquo ), in relation to the establishment of a strategic partnership with Ikhlas Capital and the proposed issuance of Redeemable Exchangeable Note (&ldquo REN&rdquo ) of up to US$40 million to Ikhlas Capital (the &ldquo Proposed Issuance&rdquo ). The investment will be made into a special purpose vehicle (&ldquo SPV&rdquo ) wholly owned by the Company that will hold or possess the option to hold a portfolio of business operations, including the Company&rsquo s Southeast Asian and South Asian business. 2. INFORMATION OF THE STRATEGIC INVESTOR Ikhlas Capital is an ASEAN private equity fund manager focused on growth, transformation and cross border value creation. The founding partners of Ikhlas Capital, Messrs Nazir Razak, Kenny Kim, Gita Wirjawan and Cesar Purisima, are well-known ASEAN professionals who have spent a combined total of more than 100 years of their careers in the region and are highly recognised leaders in their respective professional fields and countries. Investors of Ikhlas Capital include over 50 ASEAN institutions and family offices. Ikhlas Capital is licensed by the Monetary Authority of Singapore and has on-ground presence in Singapore, Kuala Lumpur, Jakarta and Manila. 3. RATIONALE FOR THE STRATEGIC PARTNERSHIP AND THE PROPOSED ISSUANCE The rationale for the strategic partnership is for the Group to work with Ikhlas Capital to develop and expand its business in Southeast Asia and South Asia. Ikhlas Capital will inject an initial capital of US$40 million for this strategic partnership into the SPV that will hold or possess the option to hold a portfolio of business operations including the Company&rsquo s Southeast Asian and South Asian business, via a 5-year REN and a 5.5% annual interest based on terms and structured to be finalised in a definitive agreement. The proceeds will drive capital expenditures and mergers and acquisitions in these regions. Ikhlas Capital shall have the right (but not the obligation) to exchange the REN into new shares of the Company at a share price of S$1.09 per share and such new shares are to be listed on the Singapore Exchange Securities Trading Limited (&ldquo SGX-ST&rdquo ), and to be ranked pari passu with the then existing issued shares of the Company. T
The chart looks ripe for a rebound.
A case of selling on rumours and buying on facts?
ENTRY OF NON-BINDING TERM SHEET WITH IKHLAS CAPITAL IN RELATION TO STRATEGIC PARTNERSHIP AND REDEEMABLE EXCHANGEABLE NOTE 1. INTRODUCTION The Board of Directors of Food Empire Holdings Limited (the &ldquo Company&rdquo , together with its subsidiaries, the &ldquo Group&rdquo ) is pleased to announce that the Company has on 21 June 2024 entered into a non-binding term sheet (the &ldquo Term Sheet&rdquo ) with Ikhlas Capital Singapore Pte. Ltd. (the &ldquo Strategic Investor&rdquo or &ldquo Ikhlas Capital&rdquo and together with the Company, the &ldquo Parties&rdquo ), in relation to the establishment of a strategic partnership with Ikhlas Capital and the proposed issuance of Redeemable Exchangeable Note (&ldquo REN&rdquo ) of up to US$40 million to Ikhlas Capital (the &ldquo Proposed Issuance&rdquo ). The investment will be made into a special purpose vehicle (&ldquo SPV&rdquo ) wholly owned by the Company that will hold or possess the option to hold a portfolio of business operations, including the Company&rsquo s Southeast Asian and South Asian business. 2. INFORMATION OF THE STRATEGIC INVESTOR Ikhlas Capital is an ASEAN private equity fund manager focused on growth, transformation and cross border value creation. The founding partners of Ikhlas Capital, Messrs Nazir Razak, Kenny Kim, Gita Wirjawan and Cesar Purisima, are well-known ASEAN professionals who have spent a combined total of more than 100 years of their careers in the region and are highly recognised leaders in their respective professional fields and countries. Investors of Ikhlas Capital include over 50 ASEAN institutions and family offices. Ikhlas Capital is licensed by the Monetary Authority of Singapore and has on-ground presence in Singapore, Kuala Lumpur, Jakarta and Manila. 3. RATIONALE FOR THE STRATEGIC PARTNERSHIP AND THE PROPOSED ISSUANCE The rationale for the strategic partnership is for the Group to work with Ikhlas Capital to develop and expand its business in Southeast Asia and South Asia. Ikhlas Capital will inject an initial capital of US$40 million for this strategic partnership into the SPV that will hold or possess the option to hold a portfolio of business operations including the Company&rsquo s Southeast Asian and South Asian business, via a 5-year REN and a 5.5% annual interest based on terms and structured to be finalised in a definitive agreement. The proceeds will drive capital expenditures and mergers and acquisitions in these regions. Ikhlas Capital shall have the right (but not the obligation) to exchange the REN into new shares of the Company at a share price of S$1.09 per share and such new shares are to be listed on the Singapore Exchange Securities Trading Limited (&ldquo SGX-ST&rdquo ), and to be ranked pari passu with the then existing issued shares of the Company. T
RHB maintains &lsquo buy&rsquo call on Food Empire despite recent earning cuts and growing coffee prices
RHB Bank Singapore&rsquo s Alfie Yeo has kept his &ldquo buy&rdquo call on Food Empire with an unchanged target price of $1.75, despite recent growing coffee prices and earnings cuts due to higher input costs.
&ldquo We like Food Empire for its strong balance sheet, cash generation ability, market share traction, valuation, and share buyback initiative,&rdquo says the analyst.
&ldquo Growth continues to be driven by capacity expansion of its ingredients business,&rdquo he adds.
Yeo notes that coffee prices have increased by 26% from US$179 ($241.95) per pound to US$245 per pound currently since 2HFY2023. As coffee forms the bulk of Food Empire&rsquo s input, these sustained higher coffee prices could result in some pressure on margins going forward, he writes.
The analyst adds that the company&rsquo s gross margins were subdued at under 30% when coffee prices reached a high of US$258 per pound in FY2022. Yeo anticipates slight margin pressure going forward given that the coffee price has rallied since 2HFY2023.
In response, the analyst has reduced his gross margin assumption from 33.5% to 33%, which is higher than previously given Food Empire&rsquo s stronger current portfolio as compared to FY2022.
&ldquo That said, Food Empire is a brand company which can implement resizing (number of sachets) and repricing strategies to mitigate higher raw material prices,&rdquo adds Yeo.
In light of these factors, the analyst has consequently lowered his earnings forecast for FY2024 - FY2026 by 3% each.
Despite this, Yeo anticipates overall growth for Food Empire led by marketing and promotion strategies in various markets. With the addition of the company&rsquo s Malaysia operation commencing sales for its new non-dairy creamer production capacity from 2QFY2024, the analyst notes that management expects it to reach full utilisation in the next five to six years.
Food Empire&rsquo s results for the 1QFY2024 ended March 31 was in line with the analyst&rsquo s estimates, increasing 14.5% y-oy to US$118 million. Growth was driven by the company&rsquo s key segments which include a 27.4% y-o-y revenue growth in Russia, Food Empire&rsquo s largest market. However, the analyst notes that due to the 23.6% depreciation of the Russian ruble against the American dollar, Russia recorded just 3.2% y-o-y revenue growth at US$39 million after conversion.
The analyst also adds that Ukraine, Kazakhstan, and the Commonwealth of Independent States (CIS) segments grew 15.7% y-o-y to US$30 million, while South East Asia grew 35.3% y-o-y to US$30 million as well.
&ldquo Overall, there were increased marketing and promotional activities, higher production volume growth from Malaysia and India manufacturing plants, and robust pricing strategy in key markets,&rdquo says Yeo.
With the exception of a lower gross profit margin, the analyst&rsquo s forecasts remain largely unchanged.
That said, potential downside risks to Food Empire&rsquo s earnings and margins identified by Yeo include disruption in operations resulting from the Russia-Ukraine conflict and negative effects from the change in the value of currencies from Russia and the CIS countries.
Food Empire' s environmental, social and governance (ESG) score sits at three (out of four), a slight drop below the country median of 3.1. As per RHB&rsquo s in-house proprietary ESG methodology, the analyst&rsquo s target price includes a 2% discount to Food Empire&rsquo s intrinsic value.
Perhaps some big buyer came along. Nothing else
No idea , Sir
MrBear12 ( Date: 12-Jun-2024 16:40) Posted:
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Yes yes, SBB. Or could it be a takeover offer somewhere?
msksmsks ( Date: 12-Jun-2024 16:32) Posted:
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I'm referring to Co doing share.buy bk
MrBear12 ( Date: 12-Jun-2024 16:29) Posted:
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Takeover food empire?
msksmsks ( Date: 12-Jun-2024 16:19) Posted:
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opined it's SBB
Food Empire today just wakeup.
Food Empire Holdings to open production facility in Kazakhstan
Food Empire Holdings has been awarded a 10-hectare plot of land in the Khorgos Special Economic Zone (SEZ) in Kazakhstan to develop a new coffee-mix production facility.
The company is expecting to receive regulatory approvals to commence construction by June, with the facility in full operation by the end of 2025, where it will produce coffee-mix sachets under Food Empire&rsquo s various brands, including its flagship MacCoffee brand, which are sold in over 60 countries.
This will be the group&rsquo s first manufacturing plant in Central Asia. It currently has eight other manufacturing facilities located across Asia and Eastern Europe, as the group considers the proximity of its manufacturing facilities to its core markets, including Russia, Ukraine, Kazakhstan and CIS markets and Indochina.
With an initial investment outlay of US$30.0 million ($40.5 million), the new facility will occupy half the plot, leaving room for future expansion.
Due to its location in one of Kazakhstan&rsquo s SEZs, the facility will also be eligible for special provisions such as tax benefits.
The project was announced by executive chairman, Tan Wang Cheow, at the Kazakhstan-Singapore Business Forum on May 23, which included guests Kassym-Jomart Tokayev, President of the Republic of Kazakhstan, as well as Deputy Prime Minister of Singapore, Heng Swee Keat.
&ldquo Revenue generated by our Ukraine, Kazakhstan and CIS Markets segment has been on the uptrend since FY2016 and annual sales from the segment crossed the US$100.0 million mark for the first time in FY2023 . Kazakhstan has been key to the growth from these markets and an important cornerstone in our plans to expand our business and solidify our market leadership position in Central Asia,&rdquo says chief executive officer, Food Empire, Sudeep Nair.
He concludes: &ldquo The new facility will enable us to meet the rising demand for our instant coffee sachets that are sold under various brands across our core markets where we enjoy strong brand equity and market share.&rdquo
23th May 2024
Food Empire Holdings to open production facility in Kazakhstan
Food Empire Holdings has been awarded a 10-hectare plot of land in the Khorgos Special Economic Zone (SEZ) in Kazakhstan to develop a new coffee-mix production facility.The company is expecting to receive regulatory approvals to commence construction by June, with the facility in full operation by the end of 2025, where it will produce coffee-mix sachets under Food Empire& rsquo s various brands, including its flagship MacCoffee brand, which are sold in over 60 countries.
This will be the group' s first manufacturing plant in Central Asia. It currently has eight other manufacturing facilities located across Asia and Eastern Europe, as the group considers the proximity of its manufacturing facilities to its core markets, including Russia, Ukraine, Kazakhstan and CIS markets and Indochina.
Risk of gg down if support 1.10 can' t hold
It' s really interesting that the purchase price of $1.13 is constantly being introduced.