Wilmar appoints former minister George Yeo as independent non-executive director

 

WILMAR Internationa : F34 +0.59%l on Friday (Apr 19) announced that it has appointed former minister George Yeo to its board as an independent non-executive director, with immediate effect. The 69-year-old Yeo holds 400,000 shares in the agribusiness giant as at the time of his appointment, the board said in a filing to the Singapore bourse.

 

He was formerly a non-executive, non-independent director of Wilmar from November 2014 to December 2017. Although he was not a nominee of either the Kuok Group or Kerry Group when he was on Wilmar' s board, he was considered a non-independent director because of his association with them. 

 

The Kuok and Kerry groups of companies are substantial shareholders of Wilmar but not related corporations, Wilmar explained. 

 

The company' s nominating committee and board of directors have considered that more than six consecutive fiscal years have passed since Yeo served as a director at Wilmar. He also has no current appointment within Wilmar, as well as Kuok and Kerry groups. He has not had business relationships with Wilmar since he left its board in December 2017. He also has not had any dealings with the Kuok or Kerry groups since May 2021, when he ceased being a senior adviser to the groups, Wilmar said. 

 

Yeo has also confirmed that he is not under any obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the Kuok or Kerry groups in relation to Wilmar' s the corporate affairs. 

 

He is currently an independent non-executive director of Hong Kong-listed AIA Group, Nasdaq-listed Pinduoduo and Singapore-listed Creative Technology. He was a member of Singapore' s Parliament from 1998 to 2011, and served in various senior positions including Minister for Information and the Arts, Minister for Health, Minister for Trade and Industry, and Minister for Foreign Affairs.

 

Wilmar' s board of directors said that it approved Yeo' s appointment after reviewing its nominating committee' s recommendations and considering his " qualifications, experience, suitability and independence" . The board said that it recognises the need for progressive board membership renewal. Yeo will also be able to " provide valuable insights on global business and political issues" the board said that this " will be of great assistance" to the company, which operates in more than 50 countries.

 

A WHOLLY owned subsidiary of Wilmar International is intending to increase its stake in Pakistan-listed Unity Foods through a public offer.

 

Wilmar Pakistan Holdings, its 52 per cent subsidiary Unity Wilmar Agro (UWA), and certain shareholders of Unity Foods intend to acquire up to 277.1 million shares, or 23.2 per cent, of Unity Foods in the offer, Wilmar said in a bourse filing on Tuesday (Mar 19).

 

The shares are to be acquired &ldquo at the price that complies with the pricing formula and other applicable Pakistan laws and regulations&rdquo , Wilmar said.

 

Considering its direct shareholding interest and indirect shareholding through UWA, Wilmar Pakistan will have a total effective shareholding interest of 28.97 per cent in Unity Foods post acquisition.

 

Unity Foods, which is listed on the Pakistan Stock Exchange, is principally involved in the manufacturing and processing of edible oils, industrial fats, flour and various feed ingredients for Pakistan&rsquo s poultry and livestock sectors.

 

As at Mar 19, Unity Foods has an issued and paid-up share capital of 11.9 billion rupees (S$57.4 million), comprising 1.2 billion ordinary shares with a par value of 10 rupees each

Between Feb 27 and Feb 29, Wilmar International : F34 +0.3% chairman and CEO Kuok Khoon Hong increased his deemed interest in the global agribusiness by 1,167,400 shares. This increased his total interest to 13.65 per cent from 13.63 per cent. HPRY Holdings, Longhlin Asia, Hong Lee Holdings and Jaygar Holdings each acquired 291,850 shares at an average price of S$3.32 per share.

 

Kuok&rsquo s previous acquisition was on Dec 15, with 500,000 shares purchased at an average price of S$3.41 apiece. He has been gradually increasing his total interest in Wilmar International since October 2022, when he held 12.94 per cent.

 

On Feb 21, Wilmar International reported that its second-half net profit for FY23 (ended Dec 31) declined 21 per cent to US$974 million. For the full financial year, net profit fell 37 per cent to US$1.5 billion. This result beat expectations, with the company&rsquo s stock price rallying to S$3.41 from S$3.26 over the subsequent Feb 22 session.

 

The group&rsquo s total revenue for FY23 came to US$67.16 billion. It noted that for H2 FY23, revenue declined by 7 per cent to US$34.62 billion, as most commodity prices decreased during the period. However, the group added that this was partially offset by higher sales volumes across all its core segments as well as higher sugar prices.

 

For FY23, its overall sales volume for the food products (consumer products, medium pack and bulk) segment increased by 6 per cent to 30.7 million tonnes. The overall sales volume for the feed and industrial products (tropical oils, oilseeds and grains, and sugar) segment increased also by 10 per cent to 61.3 million tonnes in the same period. Feed and industrial products again contributed the most to the full-year revenue, followed by the food products segment, and the plantation and sugar milling business.

 

Kuok highlighted that following an exceptional year in FY22, Wilmar International recorded a satisfactory set of results in FY23, despite headwinds faced by various businesses during the year. He noted that the group expects the tough operating conditions to continue into FY24, with tropical oil margins expected to remain depressed, sugar-milling margins to be affected by lower sugar prices, and operating conditions in China to continue being challenging.

 

He also said that the group will continue to focus on improving its operational efficiency, reducing capital expenditure, and extracting benefits from its past expansion, especially the segments that began operations in the last few years.