Willie Holdings, the controlling shareholder of Yurun, one of China’s largest pork distributors, is selling 166 million of its shares at a 9 per cent discount to Yurun’s closing price yesterday, netting HK$3.96 billion (RM1.63 billion).
Hopu Investments, run by Chinese dealmaker Feng Feng Lei and former Goldman banker Richard Ong, has taken up US$167 million worth of the shares, a source close to the deal said.
Temasek has bought US$60 million worth of shares and its investment arm, Seatown, has taken up worth US$20 million, the source, who declined to be identified because of the sensitive nature of the deal, said.
Yurun did not identify the investors in the share placement. Hopu declined to comment, while Temasek and Seatown were not available for comment.
Hopu was one of two Chinese entities that invested about US$800 million in July for a 20 per cent stake in China Mengniu Dairy. Mengniu was one of the Chinese dairies found to have sold milk containing melamine during the 2008 tainted milk scandal, a discovery that sent its shares down nearly 70 per cent.
A month before Hopu’s deal for Mengniu, private equity firm Kohlberg Kravis Roberts & Co. completed a series of investments in Ma Anshan Modern Farming Co Ltd, a leading dairy farm company headquartered in China’s central Anhui province.
Private equity and investment firms have, for the past several years, tried hard to put money into China’s booming consumer sector, though, surprisingly, few of these deals have been completed.
Seatown is run by Richard Ong’s brother Charles Ong, who was previously Temasek’s chief strategist. To read more about Seatown, click [ID:nSGE61902N]
The investment in China Yurun is now one of several deals connecting the Ong brothers.
While Charles was at Temasek, the fund and Hopu bought a stake in Iron Mining International, an iron ore producer.
Temasek and Hopu were also among the buyers for Bank of America’s US$7.3 billion stake in China Construction Bank in May.
The stake of Willie Holdings, which is selling the 166 million China Yurun shares at HK$23.88 each and will buy 90 million new shares on completion of the sale at the same price for US$277 million, will be reduced to 29.98 per cent on completion of the transactions from 36.14 per cent now.
China Yurun said it will use the net proceeds to expand its production capacity.
Morgan Stanley and UBS are the share placement agents.
China Yurun shares fell 10.5 per cent to a four-week low of HK$23.50 this morning. They trimmed the losses to trade at HK$24 by midday.
The shares had risen 14.13 per cent from the start of 2010 through yesterday’s close, bucking a 1.65 per cent drop in the broader market. — Reuters
cannot make money in investment bank, education center, telecom company. no choice has to invest in pork firm. later, dog farm, abalone firm.
By: Waqar Hamza | Published: April 23, 2010
KARACHI - The Master Plan of Gwadar port does not allow its operator Port of Singapore Authority (PSA) to construct any terminal for dirty cargo at the port.
The Nation has learnt that according to the Master Plan of the Gwadar port, the construction of shipyard, dirty cargo and oil city could be built only in Sur Bandar area which is some 20 kilometers away from Gwadar port.
So, the government’s reportedly decision of allowing PSA to construct a multi-purpose terminal for ore and coal berths at the Gwadar Port, with an estimated cost of $130 million, is surely against the Master Plan of the port.
The sources informed that PSA has failed to bring any ship to the port since 15th January this year which shows its inability to run the port efficiently, therefore, the decision of the government to let PSA construct a terminal is unhealthy one.
It has been reported that PSA has started work on the project and officials of the authority are preparing results for channel testing being done recently while soil survey and testing will likely to be completed in around two months.
Taking the poor efficiency of the operator as it has failed to bring any investment and business to the port in more than 2 years, this move of the government would surely get bounced in the coming years, sources added.
The construction of a terminal for dirty cargo is not legal as space for this purpose has been designated in the Master Plan which is at Sur Bandar, sources reasoned.
Acting Chairman Gwadar Port Authority (GPA) Ghulam Farooq when contacted said ‘ore and coal are not dirty cargo, and the said project was there in the Master Plan but it got late due to the late issuance of NOC by the Ministry.’
He said this project is meant for 900 meters extension of the current terminal and this was part of the Master Plan. It is pertinent to mention that National Assembly and Senate’s Standing Committees on Ports and Shipping last month scolded PSA for its poor performance during a joint session at Gwadar. Chairman National Assembly’s Standing Committee on Ports and Shipping in the session asked the Minister Ports and Shipping if he was satisfied with the performance of PSA and the Minister replied that he is not.
Considering such dissatisfaction of the Minister it is quite astonishing that the ministry has issues NOC to PSA for constructing a terminal for dirty cargo against the clauses of the Master Plan, sources said.
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Business/23-Apr-2010/PSA-unable-to-construct-dirty-cargo-terminal
make ensure the pigs don't gonna any disease.
or else had to lelong luncheon meat
cos the co share price sure drop
nobody dare to eat the meat
when the share price drop, they won't kbkp cos it's an honest mistake
Why they suka suka invest this & that huh.