KKR-backed Cofco Meat seeks up to $333 mil­lion in HK of­fer­ing

China Daily (USA) - - BUSINESS MARKETS - By BLOOMBERG

Cofco Meat Hold­ings Ltd, the Chi­nese main­land pork pro­ducer part-owned by KKR & Co, is seek­ing to raise as much as $333 mil­lion in a Hong Kong ini­tial pub­lic of­fer­ing.

The State-backed com­pany is of­fer­ing 975.6 mil­lion shares at HK$2 (25 US cents) to HK$2.65 apiece, ac­cord­ing to terms for the deal that were ob­tained by Bloomberg on Monday. Haier Group Corp agreed to buy $57.4 mil­lion of stock as the big­gest cor­ner­stone in­vestor in the of­fer­ing, the terms show.

In­vestors are re­turn­ing to the Chi­nese food in­dus­try after a se­ries of safety scan­dals that shook con­sumer con­fi­dence. Shares of WH Group Ltd, the Chi­nese main­land owner of the Smith­field ba­con brand, have risen 56 per­cent in Hong Kong trad­ing this year, out­pac­ing the 5.2 per­cent gain in the city’s bench­mark Hang Seng Index.

KKR, Bar­ing Pri­vate Equity Asia, Hopu In­vest­ment Man­age­ment Co and Boyu Cap­i­tal bought stakes in Cofco Meat in2014, ac­cord­ing to a pre-list­ing fil­ing with the Hong Kong Stock Ex­change. Hopu sold its in­ter­est in the com­pany last year to Sin­ga­pore state in­vest­ment firm Te­masek Hold­ings Pte, the fil­ing shows.

Cofco Meat fol­lows Dali Foods Group Co, the maker of “Copico” brand potato chips, and sea­son­ing pro­ducer Yi­hai In­ter­na­tional Hold­ing Ltd in pur­su­ing a Hong Kong list­ing to fund ex­pan­sion. First-time share sales in the city have raised $19.1 bil­lion this year, down from $21.1 bil­lion dur­ing the same pe­riod in 2015, ac­cord­ing to data com­piled by Bloomberg.

Other cor­ner­stone in­vestors in the Cofco Meat of­fer­ing in­clude China Life In­surance Co, which agreed to pur­chase $20 mil­lion of shares, the terms show. China Life Franklin As­set Man­age­ment Co will in­vest $10 mil­lion, ac­cord­ing to the terms. Such stock buy­ers agree to keep their hold­ings for six months in re­turn for early, guar­an­teed al­lo­ca­tion.

The com­pany plans to price the of­fer­ing on Oct 24 and be­gin trad­ing on Nov 1, the terms show.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.