Leading Chinese fresh produce distributor Golden Wing Mau has paid over the odds for nearly 20% per cent of New Zealand-based T&G Global, making it the second largest shareholder in the company.
Golden Wing paid NZ$2.95 a share for 13.2m shares from Bartel Holdings, and the same price for a further 11.3 million shares from Tiger Ventures NZ.
The total acquisition of NZ$72.27m in shares represents an 18% premium on the market value of NZ$61.3m, or NZ$2.50 per share as listed on 11 July, the day of the announcement.
Fruit exporter T&G is still controlled by Germany’s BayWay which owns nearly three quarters (735) of the company.
T&G Global chair Klaus Josef Lutz welcomed Golden Wing Mau’s investment in the company.
“We are welcoming Golden Wing Mau as one of the shareholders of T&G Global,” he said.
“GWM is a leading fruit distributor in China with nationwide sales channels, a large expertise for fruits from New Zealand and long term trading relationships with New Zealand as well as T&G Global.
“For T&G Global the Chinese Market is an important sales market, and we expect future growth for T&G through the new level of working relationship with GWM in the long term.”
The deal is subject to Chinese regulatory approvals and is expected to settle on or before September 15th.
Golden Wing Mau merged with Joyvio Group in December last year to create China’s biggest fresh fruit business, with annual sales of five billion Chinese Yuan.