Davis Polk & Wardwell has advised Thai food and agriculture company Charoen Pokphand Foods Public Co. Ltd. on its purchase of a controlling stake, worth $2.2 billion, in an affiliated animal feed producer.
The deal is essentially a corporate reorganization to bring Hong Kong-listed C.P. Pokphand Co. Ltd.–a maker and supplier of animal feed to farms in China–under the central management of Bangkok-based Charoen Pokphand Group Co. Ltd., which will have a 74-percent stake after the transaction. Both Charoen Pokphand and C.P. Phokphand are controlled by Thai-Chinese magnate Dhanin Chearavanont.
The deal is pending approval by the buyer’s shareholders, and is expected to close in March 2012.
Hong Kong partner Paul Chow led a team acting for the buyer in the deal. Chow says Charoen Pokphand appointed Davis Polk following a referral from UBS A.G., which served as the company’s financial advisor. Bangkok firm Weerawong, Chinnavat & Peangpanor Ltd. provided Thai counsel to Charoen Pokphand. The firm, which was formerly White & Case‘s Bangkok office before setting up as an independent practice in 2009, fielded a team led by partners Peangpanor Boonklum and Chatri Trakulmanenate.
According to Chow, the sellers used in-house counsel for the transaction.