KUALA LUMPUR (Oct 9): Guan Chong Bhd (KL:GCB) is seeking to take up a 25% stake in Ivory Coast-based cocoa manufacturing outfit Transcao Côte d'Ivoire (Transcao CI).

Guan Chong’s unit GB Cocoa Singapore Pte Ltd has inked a Memorandum of Understanding with Transcao CI’s shareholders — Conseil Du Café (CCC) and its subsidiary Transcao Negoce, which underlines exclusive negotiation rights for three months.

If it goes through, the deal will see Asia’s largest manufacturer of cocoa-derived food ingredients further extend its footprint into Ivory Coast, the world’s largest cocoa bean origin country whose annual cocoa bean production of two million tonnes accounts for 40% of global supply.

Guan Chong commissioned its newest, 60,000 MT-per-year bean grinding and processing plant with potential to hit 240,000 MT annual capacity — located in the Ivory Coast — last year. The country was Guan Chong’s first ex-Asia operating market, which it first entered in 2018.

The Transcao CI shareholders “have offered GCB an equity participation as a strategic partner” to support Transcao CI’s development and implementation strategy, Guan Chong said.

CCC is the cocoa and coffee sector regulator in Ivory Coast, whereas Transcao Negoce holds a minority stake in Transcao CI, Guan Chong added.

In the last financial year ended Dec 31, 2023 (FY2023), Guan Chong’s annual cocoa grinding capacity stood at 330,000 metric tons (MT), while industrial chocolate capacity stood at 116,000MT following an increase of 21,000MT that year.

Guan Chong’s facilities are also located in Malaysia (Pasir Gudang, Johor) and Indonesia (Batam), and its sales presence spans over 80 countries.

Shares of Guan Chong rose 4.4% or 12 sen to RM2.85, giving it a market capitalisation of RM3.35 billion. The counter is up 55% this year.