ABF’s China cane sugar business sold to PE-backed consortium

The Chinese company said in a filing that Nanning Nantang M&A Fund, an industry buyout vehicle set up by Nanning Sugar and other PE investors, has acquired controlling interests in ABF's four China joint ventures. 

Nanning Sugar announced the establishment of the fund in May, targeting RMB2.5 billion. The listed company contributed RMB249 million, while the remaining capital was raised from Minsheng Royal Asset Management, China Everbright Capital, government-backed Guangxi Rural Investment and a PE unit under Sealand Securities.

ABF entered the Chinese sugar market in 1996 with the acquisition of a cane sugar factory through its Bo Qing joint venture in Guangxi Zhuang Autonomous Region in southern China. As of the end of last year, ABF operated five cane sugar mills in Guangxi with an annual production of about 600,000 metric tons. The group also has two beet sugar factories in northern China.

Nanning Sugar Industry, which is China's largest state-owed sugar maker, generated RMB31.3 billion in revenue last year, up from RMB6.9 billion in 2014. Its net profit increased from RMB10.7 billion to RMB15.9 billion over the same period.

The ABF deal is subject to regulatory approval.

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• Topics
• Greater China
• Buyouts
• Renminbi fund
• Industrials
• Agriculture
• China
• China Everbright
• M&A