Charoen Pokphand Foods Public Company Limited ("CPF")’s board of directors had a resolution on July 23, 2014 to approve CPF and CPF Investment Limited (“CPFI”), a wholly owned subsidiary of CPF, on selling the 25% investment in ordinary shares of C.P. Pokphand Co., Ltd. (“CPP”), a listed company on the Hong Kong Stock Exchange, to ITOCHU Corporation (“ITOCHU”), a listed company on the Tokyo Stock Exchange.

CPF and CPFI will sell approximately 6,018 million of ordinary shares of CPP to ITOCHU at the selling price of HKD 1.1 per share with the total consideration of HKD 6,620 million or approximately Baht  27,397 million. After completion of the transaction, CPP will remain a subsidiary of CPF holding approximately 50% of the total issued shares in CPP.

CPF aims to use the proceeds from this transaction mainly for repayment of outstanding debts. By entering into this transaction, CPF believes that it will strengthen the Company’s financial position as well as create business synergies and network of collaboration between CPP and the buyer’s business groups.

ITOCHU, a listed company on the Tokyo Stock Exchange, founded in 1858, has evolved and grown over 150 years. Now with operations in 67 countries, ITOCHU is engaging in domestic trading, import/export, and overseas trading of various products such as textile, machinery, energy, chemicals, food, logistics services, construction, and finance, as well as business investment in Japan and overseas (www.itochu.co.jp). At the end of fiscal year 2014, ITOCHO has a market capitalization of approximately Baht 600,000 million with consolidated sales of Baht 1,700,000 million.