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Huiyuan still open to potential investors
By Jin Jing |
April 16, 2009, Thursday
|
Print Edition
Print Edition
CHINA Huiyuan Juice Group is still keeping its doors open to new investors after a proposed takeover by Coca-Cola Co was rejected by the Chinese government, a senior company executive said yesterday.
Zhu Xinli, chairman and president of the nation's biggest pure juice maker, said during a briefing that several investors have approached Huiyuan about possible cooperation. But he didn't disclose the names of potential investors and if the cooperation would include a second attempt to buy shares.
Wu Yuqiang, vice chairman and chief executive officer, said Huiyuan welcomes all kinds of partnership.
The Ministry of Commerce blocked Coca-Cola's US$2.4-billion bid for Huiyuan last month after a three-month anti-monopoly review, fearing the nation's biggest takeover by a foreign company would hurt market competition.
In response to the rejection, Zhu noted the company aims to boost its sales this year by focusing on network and expanding product mix in the diluted juice market, which grew faster than the pure fruit juice market.
Huiyuan said last year sales of pure juice fell by 2.4 percent, and sales of nectars and juice drinks rose 8.4 percent and 8.9 percent respectively.
"Huiyuan is still attractive to investors because of its well-developed industrial chain," said Liu Jinhu, an analyst at Guohai Securities Co, "But it is unlikely that any new investor would pay a high price."
Earlier media reports said possible buyers may include Taiwan Uni-President, PepsiCo Inc, China Resources Enterprise and COFCO Ltd, China's largest diversified products and services supplier. But none of them confirmed interest.
Beijing-based Huiyuan said its profit last year fell 86 percent to 88.9 million yuan (US$13 million) from 640.2 million yuan in 2007 on depreciation and higher raw material costs. Its turnover gained 6 percent to 2.8 billion yuan in the same period.
Zhu Xinli, chairman and president of the nation's biggest pure juice maker, said during a briefing that several investors have approached Huiyuan about possible cooperation. But he didn't disclose the names of potential investors and if the cooperation would include a second attempt to buy shares.
Wu Yuqiang, vice chairman and chief executive officer, said Huiyuan welcomes all kinds of partnership.
The Ministry of Commerce blocked Coca-Cola's US$2.4-billion bid for Huiyuan last month after a three-month anti-monopoly review, fearing the nation's biggest takeover by a foreign company would hurt market competition.
In response to the rejection, Zhu noted the company aims to boost its sales this year by focusing on network and expanding product mix in the diluted juice market, which grew faster than the pure fruit juice market.
Huiyuan said last year sales of pure juice fell by 2.4 percent, and sales of nectars and juice drinks rose 8.4 percent and 8.9 percent respectively.
"Huiyuan is still attractive to investors because of its well-developed industrial chain," said Liu Jinhu, an analyst at Guohai Securities Co, "But it is unlikely that any new investor would pay a high price."
Earlier media reports said possible buyers may include Taiwan Uni-President, PepsiCo Inc, China Resources Enterprise and COFCO Ltd, China's largest diversified products and services supplier. But none of them confirmed interest.
Beijing-based Huiyuan said its profit last year fell 86 percent to 88.9 million yuan (US$13 million) from 640.2 million yuan in 2007 on depreciation and higher raw material costs. Its turnover gained 6 percent to 2.8 billion yuan in the same period.
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