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SAIF Partners buys 22.98% stake in Huiyuan Juice Group from Danone

  • Anita Davis
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SAIF Partners has picked up a 22.98% stake in Chinese beverage company Huiyuan Juice Group, for approximately $260 million, more than one year after the Chinese government foiled Coca-Cola Co.’s bid to acquire Huiyuan for $2.4 billion.

According to reports, SAIF's $260 million figure appraises the company at approximately half of Coca-Cola's past valuation. Danone is parting with its stake at a 10% premium over its last closing price, and will reportedly use the capital to expand its bottled water business in China and elsewhere.

In September 2008, Coca-Cola first launched its acquisition process for Huiyuan, which is one of China's biggest beverage producers. However, in March the government rejected Coca-Cola's bid on the grounds of anti-monopoly practice, though sources at the time suggested the government had been unwilling to support a foreign company's takeover of such a successful and iconic Chinese enterprise. Had the deal progressed, Coca-Cola would have picked up Danone's 23% stake as in Huiyan, well as the 36% owned by Huiyuan's founder Zhu Xinli and a 7% stake that was then held by American PE firm Warburg Pincus.

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