NSW’s BBG snapped up
Billionaire buys beef business
CHINESE-Australian property billionaire Hui Wing Mau has taken a majority stake in New South Wales meat processor and exporter Bindaree Beef Group.
Mr Hui’s family company Archstone Investment has bought a 51% share in BBG for an undisclosed sum.
BBG has five divisions, including an abattoir at Inverell and nearby farms in northern NSW, the Australian Meat Emporium retail outlet at Alexandria near Sydney and Sanger Australia, the meat sales and marketing arm.
It processes cattle, sheep and pigs at its abattoir.
Bindaree Beef founder John “JR” McDonald said the partnership with Archstone Investment would provide the capital needed to grow the group’s operations and support its strategy of supplying premium-branded beef to global and domestic markets.
BBG had identified China as a key market and had signed a deal in October 2015 to sell its products through online marketer JD.com.
The beef processor had negotiated a deal early last year with Chinese-listed meat company Shandong Delisi Food Company for a 45% stake in BBG, subject to Foreign Investment Review Board approval.
Shandong Delisi had thousands of retail outlets in its network.
FIRB did approve Shandong Delisi Food Company’s purchase but they walked away from the deal in June last year.
A source said BBG looked for another partner for the Chinese market and was approached by Archstone Investment.
FIRB gave its approval for the deal with Archstone Investment yesterday.
Mr McDonald said he was “delighted to have the right partner in place”.
“Our joint vision for BBG is to create a more competitive company that can cater for both local and international markets,” he said.
“We will rapidly expand our reach while also upgrading our facilities, supply chain and distribution.
“The consortium has a successful investment track record and has plans to continue their investment in the upstream supply side of the beef industry in Australia.
“We are very confident in their commitment to the growth of the Bindaree business.”
BBG said its management team would continue to be led by group chief executive officer Andrew McDonald, with Archstone Investment contributing to the setting of strategy.
Mr Hui was listed as No.8 on the Financial Review’s 2017 rich list, with an estimated fortune of $5.96 billion – just above James Packer on $475 billion.