Temasek to invest $150m in China Huiyuan Juice

According to a regulatory filing, Huiyuan will issue convertible bonds to a wholly-owned unit of Temasek that convert into 166 million shares at HK$7 apiece, a premium of 14.38% over the last close. The bonds have an annual coupon of 4% and will mature in April 2019.

The net proceeds will be used for refinancing of existing debts and general working capital of the company.

Temasek will own 7.68% of Huiyuan upon conversion. SAIF's stake will fall from 16.87% to 15.58% on diluted basis.

According to AVCJ Research, SAIF acquired a 22.98% interest in Huiyuan from France-based dairy giant Danone Group for HK$2.02 billion ($260 million) in 2010. Four years earlier, Warburg Pincus, Netherlands-based FMO and Value Partners Private Equity invested $85 million for a 9.5% stake in the company.

In 2008, The Coca-Cola Company agreed to buy Huiyuan for HK$17.9 billion but the deal was blocked by Chinese regulators, citing anti-monopoly concerns.

Founded in 1992, the Beijing-headquartered juice maker holds about 56% of China's pure juice market by sales volume. The company said on Thursday that it intends to buy RMB117.7 million ($19 million) worth of assets from Japan's Suntory Holding in order to expand its product portfolio into tea and coffee beverages.

Last year, Huiyuan reported a net profit of RMB228 million ($37 million), compared to RMB16.16 million in 2012.

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• Topics
• Greater China
• Consumer
• PIPEs
• China
• Temasek Holdings
• Consumer
• SAIF Partners