CPC INTERNATIONAL <CPC> TO SELL ASIAN STAKES
CPC International Inc
said said it has agreed in principle to sell interests in its
grocery products operations in Hong Kong, Malaysia, the
Philippines, Singapore, Taiwan and Thailand to <Ajinomoto Co
Inc> of Japan for 340 mln dlrs.
    The company said the move will reduce Asian overhead and a
substantial part of the proceeds will be used to reduce debt.
    It said as part of the agreement, its current direct
investment in its existing non-consolidated joint venture with
Ajinomoto will be converted into a cooperative arrangement for
the long-term utilization of technology and trademarks.
    The company said the change in the Japanese arrangement
will give Ajinomoto full equity ownership while leaving CPC a
continuing earnings stream and cash flow.
    The transactions are subject to definitive agreements and
government approvals.
    CPC said not included in the 340 mln dlr consideration are
proceeds from the sale of some smaller Asian investments,
including a 51 pct equity interest in an oat-based food venture
to an Australian partner.
    The company said the actions being taken under its
restructuring program, including the sale of its European corn
wet milling business and other assets, overhead reductions and
other expense items and the Asian transactions, will have a
one-time positive effect on 1987 earnings.
    CPC said "Although the extent cannot yet be determined, the
company expects that 1987 earnings per share will increase by
substantially more than the previously estimated 20 pct
increase over 1986."  In 1986 CPC earned 2.30 dlrs per share.
 Reuter
