Shuanghui Group to purchase equity of six companies worth RMB 730 million to overweight 'vegetable meat' layout

Publish time:5/20/2020 12:00:00 AM      Source: CCM
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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.

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