PE to exit food platform Baicaowei to Chinese strategic
Haitong-Fortis Private Equity, a joint venture between Haitong Securities and BNP Paribas Investment Partners, is set to exit Chinese snack food platform Baicaowei to Shenzhen-listed jujube product maker Haoxiangni.
Haoxiangni plans to acquire the e-commerce platform for RMB960 million ($147 million), a filing said. It will pay RMB144 million in cash and issue RMB816 million worth of shares in exchange for Baicaowei's shares.
China-Belgium Direct Investment Fund, a domestic PE fund managed by Haitong-Fortis, acquired a 6% stake in Baicaowei for RMB31.8 million in 2014, AVCJ Research records show. The fund will receive RMB8.46 million in cash and swap its 5.1% stake in Baicaowei for RMB49 million worth of shares in Haoxiangni.
Baicaowei is operated by Hangzhou Haomusi Food. It sells snack foods such as walnuts and pineapple cakes through a self-run e-commerce platform as well as through Alibaba Group's C2C platform Taobao. The company generated RMB612 million in revenue in 2014, up from RMB229 million in 2013. For the first nine months of last year, revenue jumped to RMB815 million.
Listed in Shenzhen, Haoxiangni mainly produces and distributes jujube products.
The China-Belgium Direct Equity Investment Fund closed at EUR100 million ($120 million) in 2004. China's Ministry of Finance, China Development Bank Capital and National Council for Social Security Fund are among the LPs. It targets China-based small-and-medium enterprises, as well as Belgian companies.
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