KUALA LUMPUR: London Biscuits Bhd (Lonbisco) emerged as a substantial shareholder in poultry counter TPC Plus Bhd after completing its acquisition of 25.6 million shares or 32% in the latter today.

Checks by The Edge Financial Daily revealed that Lonbisco had acquired the block of shares in two tranches of 12.8 million shares each, in two off-market transactions at 30 sen a share for a total of RM7.7 million today.

Early last month, Lonbisco, in an announcement to the Bursa Malaysia, had said that it was looking to buy a 32% stake in TPC for RM7.7 million.

Its CEO Datuk Seri Liew Yew Chung had stated it would "benefit from cost-savings and consistent supply of quality eggs as well as a platform to develop and market new product varieties".

Meanwhile, TPC today announced Liew as its new chairman while Datuk Wah Keng Sen, who is a Lonbisco veteran, was also appointed to the TPC board.

TPC also announced board changes involving the Yee family, with patriarch Yee Tiam Teck, who was the executive chairman, being redesignated as non-executive director. It is likely his brother Jimmy E-Lian, who is the managing director, and other directors affiliated to Yee will step down and make way for Lonbisco nominees.

TPC has been incurring losses since 2006. For the financial year ended Dec 31, 2009, TPC suffered a net loss RM754,000 on the back of RM53.6 million in sales.

For FY08, TPC lost RM3.1 million from RM57.5 million in revenue. In its notes, TPC said the narrowing of losses in FY09 versus FY08 loss was due to lower raw material prices.

TPC's shares hit a 52-week high of 40.5 sen on Jan 28 this year but have since tapered off. The stock fell 2.5 sen to close at 29 sen today, while Lonbisco slipped two sen to RM1.01.