Australian CBH offloads Interflour stake in US$169M deal
The sale was finalised with joint-venture partner Origold Profits, part of Indonesia’s Salim Group, and approved by all relevant authorities
AUSTRALIA – CBH Group has sold its 50% stake in Interflour Group for $169 million, securing a major capital injection as the Western Australia farmer-owned co-operative refocuses on its core grain-handling network.
The transaction also includes the full repayment of a $46 million shareholder loan, originally reported in 2019 as US$30 million, which CBH had extended to stabilise Interflour’s finances during a turnaround phase.
The sale was finalised with joint-venture partner Origold Profits, part of Indonesia’s Salim Group, and approved by all relevant authorities.
The divestment marks the end of a two-decade partnership that significantly strengthened CBH’s commercial presence in South-east Asia.
CBH chair Simon Stead said the co-operative was proud of the business built alongside the Salim Group but emphasised that the time had come to channel investment directly into WA’s supply chain capacity.
“Over the last 20 years, CBH has valued its partnership with the Salim Group, and together we have built a successful business,” he said.
He added that 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.”
Stead noted that the proceeds will be reinvested to support CBH’s Path to 2033 Strategy, which prioritises network upgrades, enhanced out-loading speeds, expanded port capacity and modernised storage sites.
With WA grain production trending upward, CBH aims to ensure its infrastructure can support future export growth and maintain the state’s competitive edge in global markets.
Interflour was founded in 2005 with the acquisition of six flour mills across Indonesia, Malaysia and Vietnam.
Over the years, it expanded to nine mills after further purchases in Indonesia and Vietnam and the construction of a new facility in the Philippines.
Today, Interflour boasts a combined daily wheat-milling capacity of 6,870 tonnes and the ability to supply up to 1.8 million tonnes of flour annually to the South-east Asian market.
The business also operates a malt processing line and has extended into grain storage, logistics and port services, establishing an integrated presence across the supply chain.
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