China Food Company PLC Update on Sale of Animal Feed Business (8566H)
May 23 2014 - 2:01AM
UK Regulatory
TIDMCFC
RNS Number : 8566H
China Food Company PLC
23 May 2014
Press Release 23 May 2014
China Food Company Plc
("China Food", "Group" or the "Company")
Update on Sale of Animal Feed Business
and other expressions of interest
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 and other expressions of
interest in the condiments business and investing in the Group.
Following the announcement in April 2014 regarding the animal
feed sale, the discussions with the executive management team have
advanced significantly and as result, the exclusivity period has
been extended until mid-June 2014.
During the sale process regarding the animal feed business, the
Group has received expressions of interest both for the condiments
business on a standalone basis and for investing a minority stake
in the Group.
The Company is pursuing these expressions of interests and such
interest may or may not lead to an offer for either the condiments
business or a minority investment in the Group.
As previously announced in December 2013, cash flow remains
constrained and additional working capital facilities will be
required so that the Company may increase its production to fully
utilise its capacity. In the interim, the condiments business
trades at an EBITDA neutral level. The Board continues to pursue
opportunities for further debt finance in China.
- 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
Mia Gardner (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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