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United Food agrees to sell unit for 75m yuan
SOYABEAN products and animal feed supplier United Food Holdings has inked a sale and purchase agreement to sell Post-Ante Trading for 75 million yuan (S$15.28 million).
The buyer is Financial Services Company for Innovative Industry in China Limited.
The main assets held by Post-Ante Trading are land use rights in Linyi City in Shandong province with a total site area of 591,066 sqm, the earliest of which will expire on Dec 30, 2030 and the last will expire on Nov 30, 2056. It also holds machineries and equipment in Linyi City.
United Food said that Post-Ante Trading is in the business of soybean processing and animal feed production in China, after ceasing its operations in the pig rearing segment in 2014.
But the soybean processing division of Post-Ante Trading has also ceased operations since July 5, 2015, due to anti-pollution restrictions, where the local government in Linyi City ordered more than 50 companies in the region involved in heavy industries and power generation to stop production.
Later in 2016, the group closed down one of its animal feed production centres situated in Jiangquan Village in Linyi City. Post-Ante Trading has one feed production centre that remains in operation, which is situated in Yishui County in Linyi City.