NSW’s BBG snapped up

Bil­lion­aire buys beef busi­ness

Warwick Daily News - South West Queensland Rural Weekly - - News - Peter Hem­phill news@ru­ral­weekly.com

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.

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