Temasek Injects $150M In Huiyuan Juice Group

Beijing-based fruit juice producer China Huiyuan Juice Group Limited has received an investment of US$150 million from Temasek Holdings, according to a regulatory filing of the company.

Huiyuan will issue convertible bonds due in 2019 to Baytree Investments, a wholly-owned unit of Temasek. The bonds can be converted into 166 million shares at HK$7 apiece, a premium of 14.38% over the company’s last closing price before the announcement.

After the conversion, Temasek will hold 7.68% of the enlarged share capital of Huiyuan on a fully diluted basis.

Huiyuan says it will use the proceeds for refinancing of existing debts and general working capital of the company.

In 2010, SAIF Partners acquired a 22.98% stake in Huiyuan from France-based dairy giant Danone Group for HK$2.02 billion ($260 million).

After the latest transaction, SAIF’s stake will be diluted from 16.87% to 15.58%.

Founded in 1992, Hong Kong-listed Huiyuan is the largest juice maker in China by sales volume, and accounts for about 56% of the Chinese juice market.

The company just acquired RMB117.7 million ($19 million) of assets from Japan’s alcoholic beverage producer Suntory Holding last week.