Recently, CBH Group, a cooperative-owned business from Western Australia, sold half of its Interflour Group ownership, and Upper Pickering Holdings, a private investment company from Hong Kong, purchased it. The full settlement amounts to $169 million, and Interflour owes another $46 million.
The Interflour Group started back in 2005 and is now located and headquartered in Singapore. The company first established itself by acquiring six flour mills and turning them into a flour milling business in Vietnam, Malaysia, and Indonesia. Interflour has since grown to operate its own mill in Vietnam and a newly built mill in the Philippines, along with other flour mill acquisitions. The company supplies 1.8 million flour products to the Southeast Asian market and produces 6,870 tonnes of milling wheat daily.
In the region’s flour milling market, Interflour is a true market leader. In addition to milling, Interflour also offered other services, such as grain storage and malt production. For these services, Interflour also operates four private ports in the region.
CBH completed the sale with its joint-venture partner, Origold Profits, part of Indonesia’s Salim Group. The proper government agencies legally cleared the operation. CBH Chair Simon Stead expressed appreciation for the two-decade partnership with the Salim Group. He underlined how the partnership successfully established a solid business in Southeast Asia.
Stead explained that the decision to divest aligns with CBH’s focus on its core business. The proceeds from the sale will be reinvested into CBH’s network as part of its Path to 2033 Strategy. This strategy aims to deliver sustainable value to Western Australian growers in the long term.
Interflour is repaying a $46 million shareholder loan issued in 2019. CBH originally reported the loan as US$30 million and intended it to support Interflour’s turnaround plan. The company also used the loan to balance its debt and equity levels during a challenging period.
Interflour has played a significant role in strengthening CBH’s market access in Southeast Asia. The partnership also helped build valuable relationships in the region. However, CBH’s decision to divest reflects its commitment to focusing on its primary operations and ensuring sustainable growth for its members.
Upper Pickering Holdings, the new owner, will no doubt continue to support Interflour across multiple sectors. It includes food and agriculture — following its acquisition of CBH’s former stake.
For CBH, this step is an important achievement as it focuses back on its primary area of work. Infrastructure and service improvements to be undertaken by the cooperative will be beneficial to its grower members.
CBH’s Path to 2033 Strategy outlines a vision that the company will deliver through supply-chain efficiencies, enhanced market access, and greater value for growers. Unfortunately, selling Interflour plays an integral role in achieving this vision.
In the last two decades, the Interflour Group has been a major operator in the Southeast flour milling, malt, and port service production. This multi-service operation has been a key element in the region’s food supply. New ownership of Interflour by Upper Pickering Holdings will continue to provide the same vision.
CBH’s decision to sell its stake in Interflour reflects its strategic priorities. By focusing on its core business, the co-operative aims to deliver long-term value to its members. The proceeds from the sale will be reinvested to support CBH’s growth and sustainability goals.
Geopolitical endorsement by the UN and US over Gaza meets its mirror in the financial world as CBH hands the Interflour baton to Upper Pickering.
