Hong Kong-listed Chinese beverage maker Huiyuan Juice announced that the company has signed a framework agreement with Suntory China to acquire a 100% stake in the latter's food subsidiary in Shanghai.
Huiyuan will acquire a 100% stake in Suntory (Shanghai) Foods Co., Ltd. and a 50% stake in Suntory (Shanghai) Foods Marketing Co., Ltd., for a total value of about CNY118 million.
Huiyuan aims to establish a strategic partnership with Suntory in product development, quality control, and supply and demand system sectors, which will help the company improve product portfolio diversification and enhance its exploration of the beverage market. At the same time, Huiyuan and Suntory China signed a memorandum of understanding, under which Suntory will buy newly issued shares of Huiyuan.
Commenting on the transaction, Zhu Xinli, chairman of Huiyuan said the strategic cooperation is the group's important long-term strategic layout, which will reinforce their competitiveness and improve company and shareholder value.
Suntory China said that Huiyuan is a leading juice and beverage brand in China and the strategic cooperation will help the company further expand its Suntory brand. On the completion of the shares trading, Suntory will become a minority shareholder of Huiyuan. This will promote the building of a comprehensive strong partnership between the two parties and improve their competitiveness in the Chinese beverage market.