LTH plans acquisition of halal food company

KUALA
LUMPUR: Lembaga Tabung Haji (LTH) is planning to acquire a halal
food-based company in order to capitalise on its branding, said its
group managing director and chief executive officer Datuk Ismee Ismail.

He said the plan was on the drawing board and it was in the midst of identifying the company.

Speaking to reporters
after the signing of a strategic alliance between LTH and and Silver
Bird Group Bhd here yesterday, Ismee said LTH was keeping its eyes open
on potential acquisitions in line with the government’s aspiration to
turn Malaysia into a halal hub.

“It might be a
public-listed company or non-listed company,” he told reporters when
asked to comment on the type of food company LTH was looking at.

Ismee
said LTH aimed to invest RM300 million initially within the next five
years in the halal food business and simultaneously seek to leverage on
credible food companies.

Currently, LTH holds a 30% stake in Silver Bird, 9.9% in QSR Brands Bhd, and 9.8% in Lam Soon (M) Bhd.

Ismee said the halal food business would be LTH’s new business due to its potential returns and wide market prospects.

“Halal food can also
be consumed by non-Muslims and the size of the market literally equals
to that of the global food market demand,” he added.

LTH’s other core businesses include plantation, property, construction and hospitality.

In its alliance with
Silver Bird, LTH will give its endorsement to all the breadmarker’s
products that are being marketed under the “High5” brand name. Silver
Bird will also produce a range of bakery and confectionery products
marketed by LTH under a new brand name to be unveiled within three
months.

Silver Bird managing
director Datuk Jackson Tan said the alliance would further strengthen
the company’s position in the Muslim market, which comprises the major
portion of the domestic consumer bread market.

Tan said Silver Bird now commanded more than 30% of the domestic bread market.

Category: Asia

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