UK group Allied Domecq Holdings (ADH) is set to sell its 60% share in ice-cream producer Beijing Allied Faxi Food (BAFF), which posted sales of CNY60m last year.
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The Chinese company, which produces Bud’s Ice Cream, was established in 1990 as a joint venture between major domestic industry player Beijing Agriculture, Industry and Commerce (BAIC) and Allied Domecq Retailing (Europe), a unit of ADH.
ADH has held its stake since 1997 and now officials have revealed that BAIC has agreed to buy the remaining 60% for US$1.12m, giving it 100% control of the manufacturer. The deal also means that CNY5m debt owed by the joint venture to ADR will be wiped.
A major conglomerate run by the Beijing municipal government, BAIC has also worked closely with McDonald’s, Kraft General Foods and Homel Foods Corp. Company officials said yesterday that an offshore unit BAIC Scriven would be used as the takeover vehicle. This is to maintain the status of BAFF as a foreign invested joint venture.
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