July 18, 2014
Tianli Agritech unveils strategic plan to diversify its business
TianliAgritech, Inc., a Wuhan-based leading producer of breeder hogs, market hogs and black hogs, announced a strategic development plan to transform the company into a higher growth and more profitable business through targeted investments and acquisitions.
Building on the company''s strong balance sheet and the current management team''s knowledge and experience in managing a wide array of businesses across different industries, the plan aims to transform Tianli from a hog farming enterprise into a diversified company.
According to the plan, Tianli will make investments and acquisitions in selected high-growth industries, such as equipment manufacturing, optoelectronics, new material & new energy products, electromechanics and healthcare devices.
In connection with the plan, the company has acquired an 88% equity interest in Hubei Hang-ao Servo-valve Manufacturing Technology Co., Ltd. (Hang-ao) with US$6.8 million in cash and up to 1.047 million shares of Tianli common stock.
After the transaction, Hang-ao became an 88% owned subsidiary of Tianli''s subsidiary, Wuhan Aoxin Tianli Enterprise Investment Co., Ltd., previously known as Wuhan Fengxin Agricultural Science and Technology Development Co., Ltd. (WFOE). Wuhan Fengze Agricultural Science and Technology Development Co., Ltd., the Company''s wholly-owned operating subsidiary for its hog farming business, will remain under WFOE.
Ping Wang, chairman and CEO of Tianli, commented, "The New Strategic Plan we are announcing today stems from the new management team''s close collaboration with the Board of Directors to reposition Tianli for consistent and profitable growth through targeted strategic investments and acquisitions. Thanks to our much improved cash position following our recent private placements, we are able to jump start this multi-year New Strategic Plan with the acquisition of Hang-ao, an emerging electro-hydraulic servo-valve manufacturer with a strong patent portfolio and an impressive management team."
"We expect Hang-ao to contribute significantly to us following the transaction. Looking ahead, we are very excited about the prospect of our businesses and plan to aggressively seek M&A targets to drive growth and profitability and enhance shareholder value," Ping concluded.