S'pore Food eyes mergers
# Sees Q1 FY09 revenue hit by slowing economies
# Says may sell its China and Australian businesses
Singapore Food Industries said revenues will likely decline in the first quarter of next year as the global economic slowdown hits its key markets. -- ST PHOTO: ALAN LIM
SINGAPORE Food Industries (SFI) said on Wednesday it may sell or shut some of its overseas units and buy businesses closer to home in a bid to streamline its operations.
The firm, which majority shareholder Temasek Holdings is looking to sell, also said revenues will likely decline in the first quarter of next year as the global economic slowdown hits its key markets.
'It will just be harder for us to make our sales in both UK and in Singapore,' Chief Executive Roger Yeo said in an interview on Wednesday.
Mr Yeo said SFI has shut its Australian subsidiary Schulz Fisheries and is in talks to divest or shut some of its operations in China and Australia.
The food processing firm also announced its plans to shut a factory in Ireland that produced ready meals and chilled soup.
Besides looking at investments closer to home, Singapore Food also hopes to expand its consultancy business which currently involves providing advice to a food company in Abu Dhabi.
'The food business runs on knowledge as well as assets,' Mr Yeo said.
Mr Yeo also said the firm was not affected by the China milk scandal in September which saw thousands of China made dairy-based products pulled of the shelves worldwide.
Singapore state investor Temasek, which owns almost 70 per cent of SFI, said last month it is evaluating options for its stake in the food firm, which has a market capitalisation of about $300 million.
Mr Yeo declined to discuss Temasek's plans, which sparked a sharp rise in SFI's share price.
SFI shares closed down 1.7 per cent on Wednesday, having risen 7.5 per cent this year - outstripping Singapore's benchmark Straits Times Index which has fallen by almost half. -- THOMSON REUTERS
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# Sees Q1 FY09 revenue hit by slowing economies
# Says may sell its China and Australian businesses
Singapore Food Industries said revenues will likely decline in the first quarter of next year as the global economic slowdown hits its key markets. -- ST PHOTO: ALAN LIM
SINGAPORE Food Industries (SFI) said on Wednesday it may sell or shut some of its overseas units and buy businesses closer to home in a bid to streamline its operations.
The firm, which majority shareholder Temasek Holdings is looking to sell, also said revenues will likely decline in the first quarter of next year as the global economic slowdown hits its key markets.
'It will just be harder for us to make our sales in both UK and in Singapore,' Chief Executive Roger Yeo said in an interview on Wednesday.
Mr Yeo said SFI has shut its Australian subsidiary Schulz Fisheries and is in talks to divest or shut some of its operations in China and Australia.
The food processing firm also announced its plans to shut a factory in Ireland that produced ready meals and chilled soup.
Besides looking at investments closer to home, Singapore Food also hopes to expand its consultancy business which currently involves providing advice to a food company in Abu Dhabi.
'The food business runs on knowledge as well as assets,' Mr Yeo said.
Mr Yeo also said the firm was not affected by the China milk scandal in September which saw thousands of China made dairy-based products pulled of the shelves worldwide.
Singapore state investor Temasek, which owns almost 70 per cent of SFI, said last month it is evaluating options for its stake in the food firm, which has a market capitalisation of about $300 million.
Mr Yeo declined to discuss Temasek's plans, which sparked a sharp rise in SFI's share price.
SFI shares closed down 1.7 per cent on Wednesday, having risen 7.5 per cent this year - outstripping Singapore's benchmark Straits Times Index which has fallen by almost half. -- THOMSON REUTERS
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