China Food Company PLC Update on Sale of Animal Feed Business (6929E)
April 14 2014 - 2:00AM
UK Regulatory
TIDMCFC
RNS Number : 6929E
China Food Company PLC
14 April 2014
Press Release 14 April 2014
China Food Company Plc
("China Food", "Group" or the "Company")
Update on Sale of Animal Feed Business
China Food Company Plc (AIM:CFC), a leading Chinese manufacturer
of cooking and dipping sauces, today provides the following update
on the sale of its animal feed business.
PwC China is managing the sale of this business and, as
previously announced, by mid December PwC had received expressions
of interest from seven parties which were commencing the initial
due diligence process. One of these offers was from the feed
business' executive team. The Company has considered the
credibility of the various parties and the likely timing of an
agreement, and has consequently taken the decision to grant
exclusivity to the executive management team for a period of one
month. The proposed consideration is at a premium to the net assets
of the business which were GBP3.86 million as at 30 June 2013.
The Company has now signed heads of terms in relation to this
proposed transaction, and the sale is expected to conclude by
summer 2014. The Board will provide a further update on progress in
due course.
- Ends -
For further information:
China Food Company Plc
John McLean, Chairman Tel: +44 (0) 7768 031 454
www.chinafoodcompany.com
finnCap
Geoff Nash / Ben Thompson (Corporate Tel: +44 (0) 20 7220
Finance) 0500
Simon Starr (Broking)
Numis Securities
David Poutney (Joint Broker) Tel: +44 (0) 20 7260
1000
Media enquiries:
Abchurch Communications
Joanne Shears / Canace Wong Tel: +44 (0) 20 7398
7709
Joanne.shears@abchurch-group.com www.abchurch-group.com
Notes to Editors:
China Food is a well-established food manufacturing business
based in Shandong province in the People's Republic of China, a
region with a population of circa 94 million. A recent report
identified Shandong province as one of the five most attractive
'city clusters' in China, due to the high number of large cities in
the province*. The Group manufactures numerous different product
lines including soya sauce and bean paste, all targeting the
Chinese domestic market, and sold through a network of distributors
and outlets of supermarket chains in the north-eastern region of
the PRC, such as Walmart, Carrefour and Jialejia.
The Chinese sauces, dressings and condiments market is expected
to be worth CNY115 billion (US$15 billion) by 2013, driven by
Chinese population growth and economic prosperity. The Chinese
domestic market is rapidly expanding, and the Group is well
positioned to benefit from China's demographic growth and increased
urbanisation.
The Group's operations are highly scalable and able to support
further growth, and with net assets of GBP32 million (as at 30 June
2013), the prospects for China Food are strong. Further information
on China Food Company can be found at www.chinafoodcompany.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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