PE-backed Hengyang Cattle set for China reverse merger

According to a filing, Hainan Xinyuan Investment, the largest shareholder in Shenzhen-listed Sundiro Holding, will transfer its 11% stake in the firm to Hengyang Cattle in a deal worth RMB699 million ($106 million). Subsequent to that, the listed shell company will acquire all assets of Hengyang Cattle through in return for shares.

Upon completion of the transaction, Hengyang Cattle will become the largest shareholder in the Sundiro, which has existing assets in coal mining and logistics.

Based in Heilongjiang, Henyang Cattle processes and manufactures beef products. It also offers agricultural services such as cropping and grazing. The company distributes its products globally under the Foresun Group brand.

AVCJ Research records show that China Bright Store Investment committed RMB50 million for a minority stake in Hengyang Cattle in 2012. DT Capital and a domestic investment fund called Cow Fund are also among the investors in the firm, the filing said.

Two years ago, CDH supported Henyang Cattle's acquisition of Australia-based Tabro Meat and Moe Meat, both of which were previously owned by the Brorsen family.

CDH previously also invested in WH Group, formerly known as Shuanghui International Holdings. The Chinese pork processor raised HK$15.3 billion ($2 billion) when it went public in Hong Kong in 2014.  

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• Topics
• Greater China
• IPO
• Consumer
• China
• CDH Investments Management
• IPO
• manufacturing
• Consumer
• DT Capital Partners