You are here

United Food to buy 80% stakes in 3 animal feed-related companies for 120m yuan

SOYBEAN products and animal feed supplier United Food Holdings is buying 80 per cent stakes in each of three animal feed-related companies in China for 120 million yuan (S$24.5 million) in cash and convertible bonds, the company announced on Thursday after the market closed.

United Food will pay the three vendors 35 million yuan in cash. One of the vendors, Lin Zhongshi, will also receive 85 million yuan of zero per cent bonds convertible into United Food shares at 45 Singapore cents per share.

The initial conversion price represents a 21.6 per cent premium to United Food's Oct 5 close of 37 Singapore cents.

The target companies are Chengde Purun Shengwu Zhiyao Co, which develops and makes animal feed with traditional Chinese medicine extracts; Hebei Xingrun Shengwu Keji Gufen Co, which develops and makes food and animal feed additives and cosmetics, and sells medical equipment; and Benchmark Ltd, an investment holding company that holds a licence from Hebei Xingrun Shengwu to make antioxidant chemical L-Ascorbyl Palmitate.

The acquisition will allow United Food to expand and strengthen its foothold in China, and gain the target companies' expertise and products, the company said.

Your feedback is important to us

Tell us what you think. Email us at

The purchase will be funded with internal resources, the company said.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to