Gokongwei slashes stake in Aussie snack firm, takes in European partner
Three years after making a bold expansion in Australia, bilyonaryo John Gokongwei is cashing out on part of his investments down under by taking in a European snack giant as partner.
In a disclosure to the Philippine Stock Exchange, Gokongwei’s has sold a 40 percent stake in his wholly-owned British Virgin Island firm, URC Oceania Company Limited, Europe-based Intersnack Group which planned to expand its operations in Australia and New Zealand.
“The consideration for the transaction will be a mix of cash and shares of Yarra Valley Snack Foods Pty. Ltd, Intersnack’s natural snack food unit in Australia,” URC said.
“Through this transaction, URC monetizes some of the synergies it has generated from its early investments in Australia and New Zealand, while still retaining control and its ability to further create value within and beyond ANZ,” it added.
This transaction is intended to be completed once the necessary approvals are obtained from the Australian Foreign Investment Review Board and New Zealand Overseas Investment Office.
The privately-owned Intersnack Group operates in 24 countries. The company sells potato and tortilla chips, puffed and other corn snacks, baked products, popcorn and nuts, and presently holds a leading position in all markets mostly ranking first or second in terms of market shares. Intersnack generates about $3 billion in net sales across Europe. In Australia, Intersnack’s presence is currently limited to Yarra Valley, a market leader in better-for-you, organic and gluten free snacks.