SINGAPORE, May 13 (Reuters) - Singapore's Wilmar International <WLIL.SI>, the world's largest palm oil firm, said on Wednesday it plans to list 20-30 percent of its China business in an initial public offering in either Hong Kong or Shanghai.
CEO Kuok Khoon Hong said at a post-results briefing that the firm had started meeting bankers last week for the IPO and it might use the IPO proceeds to fund acquisitions.
* Net profit up 11 pct despite falling revenue
* May list China operations in Hong Kong or Shanghai
* Remains "cautiously optimistic" on prospects for 2009
(Updates with outlook, listing plans)
SINGAPORE, May 13 (Reuters) - Wilmar International <WLIL.SI>, the world's largest palm oil firm, posted an 11 percent rise in its first-quarter net profit as higher processing and trading margins offset a decline in palm oil prices.
The company said it was looking at the possibility of listing its China operations in Hong Kong or Shanghai, but did not give more details.
"We remain cautiously optimistic on our group's prospects for the year," Kuok Khoon Hong, Chairman and CEO of Wilmar said in a statement.
Wilmar, which owns oil palm plantations and runs milling, crushing, refining and processing plants in Indonesia and Malaysia, earned $380 million in the January-March quarter, up from $343 million a year ago.
The company, which has a market capitalisation of $18 billion, is expected by analysts to book a net profit of $1.2 billion for the full year, according to Reuters Estimates. That compares with $1.5 billion made in 2008.
Wilmar's first-quarter revenue fell by 31 percent to $4.96 billion, as palm oil prices dropped due to falling demand as a result of global economic slowdown.
Malaysia's benchmark palm oil price dropped from a record high of 4,486 ringgit ($1,278) per tonne in early March 2008 to 2,000 ringgit at the end of the first quarter this year.
However, prices have recovered and are now trading at around 2,700 ringgit a tonne.
Wilmar had said earlier this year it had $1 billion available which could be used for acquisitions.
Its shares have risen 49 percent so far this year, compared with a 24 percent rise in Singapore's main stock index <.FTSTI>.
($1=3.510 Malaysian Ringgit)
-- WILMAR INTERNATIONAL <WLIL.SI>
- Wilmar International, the world's largest palm oil firm,
posted on Wednesday an 11 percent rise in its first-quarter net
profit as higher processing and trading margins offset a decline
in palm oil prices. [ID:nSP404727]
-- SEMBCORP INDUSTRIES LTD <SCIL.SI>
- Sembcorp Industries Ltd posted an 8.6 percent increase in
first quarter profit to S$133.6 million, boosted by its rig
building and ship repair businesses.
WILMAR INTERNATIONAL <WLIL.SI>
-- Palm oil producer Wilmar International said on Monday it
has acquired a 25 percent interest in the equity of Chinese
mineral water firm Water Enterprises for US$25.6 million.