Wilmar buys into Goodman Fielder..a possible takeover?

Wilmar International, the world's largest palm oil trader/producder,  announced they have acquired a 10.1% stake in Goodman Fielder in Australia. Goodman Fielder is the largest bread maker in Australia and New Zealand.

Last year, Wilmar bought the sugar unit of CSR Ltd, Sucrogen, Australia's largest sugar company, for A$1.75 billion.  Wilmar also bought Prosperpine Sugar Miller Association for A$120 million plus working capital, making it the largest raw and refined sugar producer in Australia.

According to a statement release on SGX, where Wilmar is listed,

"This acquisition will make Wilmar the largest shareholder in Goodman Fielder. Wilmar is currently assessing whether to increase its shareholding in Goodman Fielder.

Wilmar’s Chairman and CEO, Mr Kuok Khoon Hong said: “We look forward to working with Goodman Fielder and its management team to improve Goodman Fielder’s performance over time”."


Possibly Wilmar might look into buying the rest of Goodman Fielder. Unsurprisingly, the share price of Goodman has rose to a high of $0.695 and closed at $0.66. Goodman was trading at $0.495 exactly 7 days ago.


For now I will be keeping Goodman on the watch list.