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Chinese instant noodles and beverages producer Tingyi is looking at options to take over instant food businesses in line with its efforts to boost its growth.

In an interview with Bloomberg, Tingyi CFO Frank Lin said that the company is likely form a new strategic alliance in 2014.

"For the instant food business, we choose M&A instead of organic growth because it’s faster to expand our presence in the China market."

The instant noodle maker is seeking acquisitions, and is considering both domestic and overseas brands.

Over the next five years, Tingyi will focus on grabbing a deal in China; however, no final decision has been made to date for deals and tie-ups, Lin added.

The company plans to pay out 50% of its earnings as a dividend, and will set aside the remaining for the possible acquisitions.

"Our drinks and instant noodles businesses will still be the growth drivers for the company next year."

As of September, Tingyi held $1.6bn in cash and short-term investments.

"Our drinks and instant noodles businesses will still be the growth drivers for the company next year. Any impact to consumer demand in 2014 will be very limited."

Tingyi is also considering spinning off its food and beverage units to improve operations and maximise shareholders’ interest.

Tingyi, based in Tianjin, China, is involved in the production and sale of instant noodles, beverages and instant food under the Master Kong brand.


Image: Tingyi keen to expand presence in Chinese food segment. Photo: courtesy of Grant Cochrane at FreeDigitalPhotos.net.