AllBright Advises Fosun International on investment in Beijing Sanyuan Foods2014-10-314149
On October 22, 2014, the China Securities Regulatory Commission approved Beijing Sanyuan Foods Co., Ltd.’s (600429.SH) application for the private placement of its A-shares. According to its proposal, Sanyuan Foods will issue an additional of 612,557,426 A-shares at 6.53 RMB per share, among which 306,278,713 shares will be sold at about 1 billion RMB to two units under Fosun International (00656.HK). After the private placement, Fosun International will own a 20.45% stake in Sanyuan Foods through its two subsidiaries.
Sanyuan Foods is a listed company focusing on dairy products, whose controlling shareholder is Beijing Capital Agriculture Group Co., Ltd. It has established 16 manufacturing bases in China and processes 1,000 tons of fresh milk every day. Its products, under well-know brands such as Sanyuan and Yanshan, are sold throughout the Chinese market.
This investment is Fosun International’s successful attempt in joining the ownership structure reform of state-owned enterprises, reflecting the company’s continuous emphasis on consumption and opportunities brought by Chinese consumers’ increasing demands for better and premium products.
AllBright partners Lawrence Zhu, Ark Bao, Shen Cheng and Que Lina formed the team to represent Fosun International as its PRC legal counsel. The team advised Fosun International on due diligence, drafting investment framework agreements and transaction agreements, presenting at negotiations and preparing application documents.