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Friday, January 25, 2013

JB Foods places out new shares to Tee Yih Jia Food Manufacturing to raise $21.6m


Mainboard-listed JB Foods, the Malaysian company which is engaged in the production and sale of cocoa powder, cocoa butter, cocoa liquor and cocoa cake, announced the group has entered into a conditional share subscription agreement with Tee Yih Jia Food Manufacturing, the producer of frozen convenience foods.
Under the agreement, Tee Yih Jia will subscribe to 80 million new ordinary shares of JB Foods, representing 16.67% of the share capital of the group on an enlarged basis to be allotted and issued by the group.

The issue price of $0.27 per share represents a discount of 9.27% of the weighted average price for trades done on the preceding market day up to the time the agreement was signed.

The net proceeds of the $21.59 million, after deducting estimated expenses, will be used to fund future acquisitions and on-going expansion plans of the group, as well as for general working capital.

JB Foods is expanding its existing facilities located at the Port of Tanjung Pelepas to ramp up production capacity from 60,000 tonnes to 85,000 tonnes of cocoa bean equivalent per year by FY2013.  The capacity upgrade will enable the group to retain production flexibility and minimise bottlenecks as it progressively and simultaneously assess the level of demand required to support its capacity expansion.

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