Singapore-listed Want Want Holdings is in the market for a $50 million loan. The snack food maker with major operations and subsidiaries in China and Taiwan has mandated DBS Bank as sole arranger for a three-year term loan with bullet repayment. Launch is scheduled for the last week of June.
The proceeds from the loan will be utilised for refinancing and working capital purposes. Want Want Holdings mainly produces rice crackers, snacks and beverages. In 2001, rice crackers accounted for 45% of the company's turnover, while snacks and beverages accounted for 34% and 17% respectively. The company added six more production lines in China for rice crackers bringing the total number of production lines to 21.
The company has entered into a joint venture with Channel Tea Co (CTC), a British Virgin Islands-incorporated company, in Shanghai, known as Shanghai WantWant Channel Tea Ltd (SWCT). SWCT's main activities will include operating fast food shops, pubs, tea houses and the sale of related products such as cigarettes and wines.
China and Taiwan are the main markets for the company, with the former contributing 88% to the turnover in 2001. Taiwan accounted for 8% of the turnover. Group turnover for 2001 increased 29% to S$730 million. Profits before tax grew by 40% to S$180 million with the China operations garnering a 91% share.
The company's shareholders last month approved a share split whereby each existing ordinary share of par value $0.20 each was split into two ordinary shares of par value US$0.10 each. As of March 27, chairman Tsai Eng Meng was the largest shareholder in the company with a 30% stake.
