Huiyuan to buy unit from its chairman
Source: Bloomberg News |
May 25, 2013, Saturday
|
Print Edition
Print Edition
CHINA Huiyuan Juice Group Ltd, the nation's biggest juice maker by market share, said it will buy a concentrates-and-puree maker from its chairman for HK$3.42 billion (US$440 million) in new stock.
Huiyuan will issue 447.3 million new common shares and 655.3 million in new convertible preferred shares to a company owned by Chairman Zhu Xinli, according to a Hong Kong stock exchange filing.
The Beijing-based juice maker said it will also assume HK$1.52 billion of debt. Huiyuan fell 4.3 percent, the biggest drop in more than a month, to close at HK$3.13 yesterday.
Huiyuan had net debt of 3.2 billion yuan (US$522 million) as of December, according to Bloomberg News data.
Huiyuan has attributed a decline in earnings to pressure from China's slowing economy and consumer concerns about food-safety issues. Last year profit sank 95 percent to 16.2 million yuan, the company said in March.
The target company, China Huiyuan Industry Holding Ltd, had a profit of 358 million yuan last year and 275 million yuan in 2011.
The purchase "secures long-term access to key raw materials," Huiyuan said in the filing.
Huiyuan will issue 447.3 million new common shares and 655.3 million in new convertible preferred shares to a company owned by Chairman Zhu Xinli, according to a Hong Kong stock exchange filing.
The Beijing-based juice maker said it will also assume HK$1.52 billion of debt. Huiyuan fell 4.3 percent, the biggest drop in more than a month, to close at HK$3.13 yesterday.
Huiyuan had net debt of 3.2 billion yuan (US$522 million) as of December, according to Bloomberg News data.
Huiyuan has attributed a decline in earnings to pressure from China's slowing economy and consumer concerns about food-safety issues. Last year profit sank 95 percent to 16.2 million yuan, the company said in March.
The target company, China Huiyuan Industry Holding Ltd, had a profit of 358 million yuan last year and 275 million yuan in 2011.
The purchase "secures long-term access to key raw materials," Huiyuan said in the filing.
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