Previously,
Shuanghui Group made an announcement that the company will acquire the equity
of the six companies owned by Rotary Vortex Limited (Rotary Vortex), a company
that has been established in Hong Kong especially for the participation in the
share transfer of Shuanghui Group. The acquisition aims to achieve professional
operation and centralized management in share investment, according to
Shuanghui Group.
Wuhu Import and Export and Shanghai Shuanghui are
among the companies
Owning
73.41% of the equity, Rotary Vortex is the controlling shareholder of the six
companies, Shuanghui Group will purchase the shares from. Among those six
companies, Wuhu Import and Export Co. (Wuhu Import and Export) has the highest
value of assessment at a price of RMB 873 million, while its book value of net
assets is RMB 181 million.
The company
was founded in April in 2016 with a registered capital of RMB 190 million,
located in the Southeast of China. Rotary Vortex owns 49% of its equity and
Shuanghui Group has 51% shares in the company.
Wuhu Import
and Export has main business varying from import and export of meat, pig
products, beef and mutton products to food circulation. Last year the company
had revenue of RMB 4 billion 28 million and its net profit reached RMB 150
million.
Shanghai
Shuanghui is also one of those six companies, with 26.4% of the equity to be
acquired by Shuanghui Group.
Shanghai
Shuanghui was founded in 1998 with a registered capital of RMB 485 million. Rotary
Vortex owns 26.4% of its equity while the company itself has 73.96% of the
equity. Its business mainly focus on production of food (meat, cooked food,
cold food and snacks), leasing of cold storages and sales of products. The
company had revenue of RMB 801 million last year, with a net profit of RMB 26.9
million.
Shuanghui Group to overweight vegetable layout
by acquiring shares of Du Pont Protein and Du Pont Food
Du Pont
Protein and Du Pont Food are also in the list of those six companies, with the
shares respectively of 40% and 48% to be acquired by Shuanghui Group. It is
worth mentioning that both of Du Pont Protein and Du Pont Food focus on the
field of vegetable protein in this acquisition. Plus the fact that Shuanghui
Group just launched a section especially for vegetable meat on the e-commerce
platform T-mall owned by Alibaba, it is quite convincing that Shuanghui Group also
intends to overweight its layout of vegetable meat through the acquisition.
Shuanghui Group is considered as the biggest meat
proceeding base in China
As a
leading company in agricultural industrialization, Shuanghui Group is
considered as the biggest meat proceeding base in China. The Headquarter of the
company lies in central China. With more than 30 modern meat proceeding bases
and supporting industries covering 18 provinces and cities in the whole
country, Shuanghui Group as its own complete industrial chain from breeding,
feeding, butchering, meat proceeding, packing, cold chain logistics to chain
commerce. The company’s annual production and sales of meat products is able to
reach more than 3 million tons, thanks to nearly a million sales terminals.
Shuanghui
Group has also made itself the world’s biggest meat proceeding enterprise since
it purchased all of the equity of Smithfield Foods, the world’s largest pig
feeding company from the USA at a price of USD 7 billion 100 million in May,
2013.
Recently
the company tends to accelerate its step to food industrial chain giant with
different extension. On April 28, Shuanghui Group gave out another investment
plan concerning the overweighting of pig breeding and an industrialization
project of broiler. In addition, the company may transfer one of its wholly
owned subsidiaries, Luohe Huisheng Pharmaceutical, to concentrate on its
development of meat industry.
For more
information on China’s food market, please check our Food
and Feed News or email emarket1@cnchemicals.com..