Shanghai Precise Packaging eyes Black Cattle Food unit
Shanghai Precise Packaging is eyeing the acquisition of Black Cattle Food (Suzhou) Co, a subsidiary of soybean milk powder company Black Cattle Food Co Ltd.
Shanghai Precise Packaging revealed on Saturday (12 December) it has submitted an offer with a view to take control of 100% equity in Suzhou Black Cattle. The offer price totals CNY12.3bn (US$1.9bn) including transaction costs and the assumption of debt, Shanghai Precise Packaging said.
According to Shanghai Precise Packaging, Suzhou Black Cattle has assets of CNY6.37bn and net debt of CNY5.99bn.
Shanghai Precise Packaging said that acquisition of Suzhou Black Cattle is "in line with the requirements of the company's strategic development".
Suzhou Black Cattle is based in the south east of the city of Suzhou in Jiangsu Province. Parent company Black Cattle Food Co. has seen its profits hit this year and at the end of September the soy processor reported a net loss for the first nine months of CNY1.59bn. In order to stem the decline, the company said that it will embark upon a "major" asset reorganisation and the sale of Suzhou Black Cattle is a part of this effort.
Suzhou Black Cattle is being auctioned via open bidding process, the company said in a regulatory filing.
- just-food 2017 Survey - your thoughts on growth
- 2017 - what will shape the UK food sector?
- Food market in 2017: need-to-know US trends
- Food market in 2017: big foodservice trends
- Could BRF's Turkey move pave way for OneFoods IPO?
- Ferrero insists Nutella not pulled from shelves
- UK's Bakkavor plays down IPO "speculation"
- Dairy giant Muller appoints new CFO, COO
- Kellogg announces new "nutritious" line-up
- PepsiCo launches Walkers Mediterranean in UK