Fosun Funds To Acquire 14% Of CNFC Fishery For $111M

Four subsidiary investment funds under Chinese conglomerate Fosun has agreed to acquire 105 million shares of Shenzhen-listed CNFC Overseas Fishery Co., Ltd for RMB681 million (US$111 million) at RMB6.46 per share in a private share placement, according to a regulatory filing.

After the completion of the transaction, the four funds including Fosun Industrial Investment Fund will hold over 14% of CNFC on a fully-diluted basis, and become the company’s second-largest shareholder group.

Fosun’s investment is part of CNFC’s reorganization since its shares were suspended trading on March 31 this year. CNFC will also issue 316 million new shares to Taiwan’s Sino-Aqua Corporation in a stock and cash deal, in exchange for 11 fishery assets and other assets from Sino-Aqua.

The newly issued shares are subjected to a 36-months lock-up period.

Founded in 1997, CNFC is primarily focused on deep-sea fishing, as well as the storage, transportation and distribution of ocean marine products in China.

This is not Fosun’s first foray into the food and beverage sector. In July, Fosun agreed to acquire a 20% stake in Spanish ham and wine producer the Osborne Group.

In March, Fosun signed an agreement to take a 20.45% stake in Beijing-based dairy firm Sanyuan Foods Co., Ltd. for RMB$2 billion ($325 million).

China Expert network