CPF’s New Subsidiary “CP Foods Capital” to Offer $275mn of Exchangeable Bonds

Charoen Pokphand Foods Public Company Limited (CPF) announced the establishment of a new subsidiary named CP Foods Capital Limited (CPFC), an investment business, in British Virgin Island with the registered capital of USD 1,000,000. CPF holds 100% of shares.

 

In addition, CPFC has priced and offered USD275 million 0.50 per cent. Exchangeable bonds due 2025 to investors outside of Thailand (EBs) . The EBs are expected to be listed on the Singapore Stock Exchange (SGX) by June 22, 2020.

 

Pursuant to the terms and conditions of the EBs, the EB holders have the options to (a) exchange the EBs into ordinary shares of CPF, (b) put the EBs to CPFC on June 18, 2022 or (c) hold the EBs until their maturity, whereby in the case of (b) and (c) CPFC will repay the EB holders in cash.

 

In accordance with the terms and conditions of the EBs, where the EB holders exercise the exchange right and the aggregate number of CPF shares to be delivered to such EB holders by CPFC exceeds the specified threshold, CPFC can redeem the EBs in respect of such number of CPF Shares which exceed the specified threshold using cash of equivalent value.