Wil­mar look­ing at list­ing ops in Shang­hai

New Straits Times - - Business -

SIN­GA­PORE: Sin­ga­pore’s Wil­mar In­ter­na­tional Ltd, which is con­sid­er­ing spin­ning off its China busi­ness, is look­ing to list it in Shang­hai to boost its pro­file on the main­land and po­ten­tially pave the way for deals.

China is Wil­mar’s big­gest mar­ket, ac­count­ing for nearly 50 per cent of last year’s rev­enue of $41.4 bil­lion (RM179.6 bil­lion) for one of the world’s largest edi­ble oil pro­ces­sors.

Its an­nual rev­enue from China has risen about 50 per cent since 2009.

Wil­mar said in last Thurs­day’s earn­ings state­ment it was car­ry­ing out an “in­ter­nal re­struc­tur­ing” of those op­er­a­tions. It con­firmed on Fri­day it would mean re­viv­ing a list­ing plan first aired in 2009, but swap­ping the venue to Shang­hai from Hong Kong.

“The tim­ing is favourable as the Chi­nese gov­ern­ment is en­cour­ag­ing for­eign com­pa­nies to list there,” a spokesman said.

Pro­ceeds could be used to “ex­pand the busi­ness” but the com­pany did not com­ment on list­ing size or specifics, say­ing any of­fer­ing pro­posal would be at least 18 months away.

Wil­mar’s move re­vives its China list­ing plans nearly eight years after it shelved a blue­print for a roughly US$3 bil­lion list­ing of the Chi­nese unit in Hong Kong in 2009, blam­ing volatile mar­kets.

“In Sin­ga­pore, the price earn­ings ra­tio is not as good as China, China is about 30 per cent more. It is not pos­si­ble to take money out of China and in­vest in Sin­ga­pore stock ex­change,” said a source. Reuters

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