Agriculture Transaction Brief: Guan Chong acquires 25% stake in C?te d'Ivoire’s Transcao CI for $28.9M

Transaction Summary

Guan Chong Berhad (GCB), the world’s fourth-largest cocoa grinder and Asia’s leading cocoa-derived food ingredient manufacturer, has completed the acquisition of a 25% stake in Transcao C?te d’Ivoire SA (Transcao CI) from Conseil du Café-Cacao (CCC), the Ivorian government’s cocoa and coffee regulatory body, for RM130.1 million ($28.9 million). The transaction includes a $7.9 million equity investment and a $21.1 million asset contribution, funded through internal reserves, with part of the amount reimbursed via bank financing. Established in 2019, Transcao CI supports the Ivorian government’s drive for local cocoa processing, producing cocoa liquor, butter, and powder for domestic and international markets. The deal was first announced on 9 October 2024 and was executed through GCB Cocoa Singapore Pte Ltd, GCB’s wholly owned subsidiary, and was formalised via a share sale agreement with CCC. Expected to close by Q2 2025, the deal will see CCC’s shareholding in Transcao CI reduce from 99.83% to 74.83% while Transcao Negoce retains 0.17%.?

Terms

• Seller: Conseil du Café-Cacao
• Buyer: Guan Chong Berhad (through its subsidiary GCB Cocoa Singapore Pte Ltd)
• Target: Transcao-Cote D’ivoire
• Financing Type: Equity
• Investment Strategy: Strategic Minority Investment
• Financing Instrument: Ordinary shares
• Equity Stake: 25%
• Amount: RM130.1 million ($28.9 million)

Transaction Rationale

Guan Chong Bhd (GCB)’s 25% stake in Transcao C?te d’Ivoire (Transcao CI) strengthens its direct cocoa sourcing amid a global supply crunch. Cocoa prices soared to $10,412 per metric ton in December 2024, more than doubling from $4,209 a year earlier due to severe droughts and floods in C?te d'Ivoire and Ghana. With rising prices and supply chain disruptions, GCB’s investment reduces reliance on...

• Market Opportunity: C?te d'Ivoire, the world’s top cocoa producer, aims for 100% local processing by 2030, up from under 40% today, creating a major growth opportunity for local grinders like Transcao CI. The $119.4 billion global chocolate market is projected to grow at a 4.1% CAGR through 2030, driven by...
• Risk/Return Analysis: Transcao CI benefits from C?te d'Ivoire’s push for 100% local cocoa processing by 2030, rising global demand for premium cocoa ingredients, and GCB’s technical expertise and distribution network across 80+ countries. GCB’s operations in Malaysia, Indonesia, and C?te d’Ivoire strengthen Transcao CI’s...

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