Australian agri co-op CBH Group has sold its 50% stake in southeast Asian grain processor Interflour Group for AU$169m.
The farmer-owned co-op, headquartered in Perth, says it made the move to secure the major capital injection it needs as it refocuses on its core grain-handling network.
Through the deal, which sees Interflour acquired by Hong Kong investment firm Upper Pickering Holdings, CBH has received the full repayment of a $46m shareholder loan, given to Interflour in 2019 to stabilise its finances during a turnaround phase.
The divestment ends a two-decade partnership that strengthened CBH’s commercial presence in South-east Asia, with CBH chair Simon Stead saying the priority is to channel investment directly into WA’s supply chain capacity.
“Over the last 20 years, CBH has valued its partnership with the Salim Group, and together we have built a successful business,” he said. “The decision to divest reflects our steadfast focus on our core business and generating sustainable value for WA growers.”
The co-op will use the money from the sale to support its Path to 2033 Strategy, which sets out goals for increased storage and handling capacity, improved marketing ability and a bigger share of the Western Australia fertiliser market.
