Kuaijishan Shaoxing Rice Wine Co., Ltd. cancelled the acquisition of Shaoxing Xianheng Food Co., Ltd. from Yu Longsheng and 197 other individuals.
October 30, 2018
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Kuaijishan Shaoxing Rice Wine Co., Ltd. (SHSE:601579) signed a letter of intent to acquire Shaoxing Xianheng Food Co., Ltd. from Yu Longsheng and 197 other individuals on October 31, 2017. Kuaijishan Shaoxing Rice Wine Co., Ltd. signed the conditional share transfer agreement to acquire Shaoxing Xianheng Food Co., Ltd. from Yu Longsheng and 197 other individuals for approximately CNY 740 million on November 6, 2017. Kuaijishan Shaoxing Rice Wine Co., Ltd. will make the payment in cash. Prior to the transaction, Yu Longsheng held 67.13% stake and other 197 individuals held 32.87% stake in Shaoxing Xianheng Food Co., Ltd. Kuaijishan Shaoxing Rice Wine Co., Ltd. shall finance the transaction through funds raised from public issuance of convertible bonds. After the transaction, Shaoxing Xianheng Food Co., Ltd. will operate as a wholly owned subsidiary of Kuaijishan Shaoxing Rice Wine Co., Ltd.
Shaoxing Xianheng Food Co., Ltd. reported total assets of CNY 151.59 million and total equity of CNY 114.11 million as at December 31, 2016. Shaoxing Xianheng Food Co., Ltd. reported revenues of CNY 129.8 million, operating profit of CNY 40.34 million and net profit of CNY 28.91 million in 2016. The transaction is subject to approval of China Securities Regulatory Commission, approval of shareholders' of Kuaijishan Shaoxing Rice Wine Co., Ltd. and approval of shareholders' of Shaoxing Xianheng Food Co., Ltd. The Board of Directors of Kuaijishan Shaoxing Rice Wine Co., Ltd. approved the transaction. Fan Naixing and Yang Shumin of Ping An Securities Company Ltd. acted as the financial advisors and Shen Tianfeng, Lv Qing and Zhang Fanying of Grandall Law Firm acted as the legal advisors to Kuaijishan Shaoxing Rice Wine Co., Ltd.
Kuaijishan Shaoxing Rice Wine Co., Ltd. (SHSE:601579) cancelled the acquisition of Shaoxing Xianheng Food Co., Ltd. from Yu Longsheng and 197 other individuals on October 31, 2018.
Kuaijishan Shaoxing Rice Wine Co., Ltd., formerly Kuaijishan Shaoxing Wine Co., Ltd. is a China-based company principally engaged in the Chinese spirit business. The Company mainly operates its business through research and development (R&D), production and sale of Shaoxing yellow spirits. The Companyâs products portfolio consists of midrange and high-end bottled Shaoxing yellow spirits, ordinary bottled Shaoxing yellow spirits and bottled Shaoxing yellow spirits base liquors, among others. The Company provides its products under the brand name of Kuajishan. It distributes its products within domestic market and to overseas markets, including Japan, Singapore, Hong Kong, Macau and others.