Leading Asian agribusiness group Wilmar International has bought a remaining 50% stake in Australia-based Wilmar Gavilon Pty Ltd (WG) that it does not already hold, making it the sole owner of WG.
The 50% interest was acquired for US$36.6M from Gavilon Pty Ltd, Wilmar said on 28 February.
WG sources, trades, markets and distributes agricultural commodities, including grains, oils, animal protein meals, vegetable protein meals and fats.
“The acquisition was undertaken as Wilmar believes that significant synergies can be achieved with the integration of WG’s operations into Wilmar’s businesses in Australia and New Zealand,” the company said.
Once the deal is completed, WG will be a wholly-owned subsidiary of Wilmar and will be known as Wilmar Trading (Australia) Pty Ltd. The deal also includes WG’s wholly-owned subsidiary, Queensland Bulk Terminals Pty Ltd (QBT) and WG’s 50:50 joint venture company, International Nutritionals Ltd. QBT is a bulk storage and handling facility which handles a range of grains and liquids including maize and tallow.
As well as the cash consideration of US$36.6M, the deal include 50% of the undistributed net profit after tax of the WG Group for an agreed period up to completion, pursuant to a share purchase agreement between Wilmar, Gavilon and Gavilon Agriculture Investment, the holding company of Gavilon.
Wilmar’s activities include oil palm cultivation, oilseed crushing, edible oils refining, production of speciality fats, oleochemicals and biodiesel, and fertiliser manufacturing as well as rice and flour milling and sugar milling and refining.