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  • Greater China

China Everbright’s mezz fund backs Sichuan Dekang Agriculture

  • Winnie Liu
  • 28 November 2016
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China Everbright has made an equity investment in Sichuan Dekang Agriculture Technology, a livestock farming company in China, through its renminbi-denominated mezzanine fund.

Sichuan Dekang was founded in 2006 by Yuxin Chen and Degen Wang, who are founder and president of Chinese agricultural company West Hope Group, respectively. The company is focused on hog farming and chicken farming, with hog breeds sourced from Canada, it said in a release. The company has adopted a computerized management system and genetic breeding program to ensure a consistent breeding process. It currently manages more than 30 hog farming sites in China.

Following the new investment, the GP will support Dekang to execute bolt-on acquisitions and improve its corporate governance.

"As a manufacturer and supplier of meat, eggs and dairy products, we have the social responsibility to provide safe and quality household products to consumers, helping them live the best quality life possible," said Dekang's Wang. "China Everbright's rich experience in corporate governance, finance and capital market will help us become a world-class agriculture and food company."

China Everbright's mezzanine fund provides structured solutions in the form of hybrid debt-plus-equity instruments. It seeks to partner with industry leaders and create investment platforms that identify acquisition targets and take the lead on deal structuring and negotiation. Recent investments include a commitment to healthcare conglomerate Neusoft Holdings and Sichuan Hope Education Group.

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