C.P. Pokphand agrees to buy Modern State for $608 mln
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Thailand's C.P. Pokphand Co Ltd said Monday it has agreed to buy Modern State Investments Ltd, for HK$4.735 billion (US$608 million), gaining livestock feed and livestock production facilities in Vietnam.
Modern State is a British Virgin Islands company which controls 70.82 percent of CP Vietnam Ltd (CPVL), a fully integrated livestock and aquaculture company with its primary operations in Vietnam.
UBS is the financial adviser to C.P. Pokphand.
CIMB Securities has been appointed as the independent financial adviser to the independent board and shareholders.
$1 = 7.790 Hong Kong Dollars
HK shares likely edge higher
Hong Kong stocks could edge higher on Tuesday on short-covering that may support a technical rebound from oversold conditions not seen since January last year.
With a combined weight of about a fifth of the benchmark Hang Seng Index, Chinese banks could support any lift given their attractive valuations.
The Hang Seng lost 0.4 percent to hit a nine-month low on Monday on fears of more government tightening measures, moving deeper into oversold territory and raising the risk of a short squeeze.
The weak property sector pushed the Hang Seng's relative strength index down to 15.1, the lowest since January last year and well below the threshold of 30 that indicates whether a security is technically oversold.
Elsewhere in Asia, Japan's benchmark Nikkei was trading up 0.75 percent to 9,424.68, while the Korea Composite Stock Price Index gained 1.02 percent to 2,040.15 as of 0045 GMT.
