Interflour’s Cai Mep Port in Vietnam’s Ba Ria Vung Tau province, south-east of Ho Chi Minh City, includes one of Interflour’s nine mills across South-east Asia, and the group’s Intermalt plant. Photo: Interflour

WESTERN Australia’s CBH Group has sold its half of Interflour Group to Upper Pickering Holdings, a private investment firm based in Hong Kong.

The sale of the Singapore-based business has netted the WA grower-owned co-operative $169 million, as well as repayment of the $46M shareholder loan from Interflour.

The loan was reported in 2019 as totalling US$30M, issued to support the flour-milling and malting business’ turnaround plan, and balance debt and equity levels.

The transaction was agreed with CBH’s joint-venture partner Origold Profits, part of Indonesian conglomerate Salim Group, and has been approved by the relevant government authorities.

“Over the last 20 years, CBH has valued its partnership with the Salim Group, and together we have built a successful business,” CBH chair Simon Stead said.

“The investment also enabled the co-op to strengthen its market access and build relationships in South-east Asia.

“The decision to divest reflects our steadfast focus on our core business and generating sustainable value for WA growers.

“The proceeds from this sale will be reinvested into our network, supporting CBH’s Path to 2033 Strategy and helping us to sustainably deliver value both now and for years to come.”

On a 2022 visit to Interflour’s Eastern Pearl Flour Mills in Indonesia’s Makassar region are Interflour milling manager Colin Halliday, mill senior vice president Christiany Situru, Australian Trade Minister Don Farrell, Indonesian Minister for Trade and Tourism Rudy Soeparman, Interflour managing director and CEO Avi Fintz, Australian Prime Minister Anthony Albanese, Interflour chief finance officer Satoto A. Nugroho, then Australian Minister for Industry and Science Ed Husic, and Australian MP Luke Gosling. Photo: CBH Group

The Interflour Group was established in 2005 with the purchase of six flour mills across Indonesia, Malaysia, and Vietnam.

Interflour later purchased flour mills in Indonesia and Vietnam, and built a new flour mill in The Philippines, giving it nine mills all up with a total daily wheat-milling capacity of 6870 tonnes, and annual capacity to supply up to 1.8 million tonnes of flour to the South-East Asian market.

Interflour is also involved in malt production, and has extended its business along the supply chain with grain storage and port services.

Source: CBH, Interflour