Dabeinong desires stake in Fujian Aonong Organic
12 December 2023
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Chinese language animal feed and pig manufacturer Beijing Dabeinong Era is looking for a a minimum of 51% stake within the controlling shareholder of Fujian Aonong Organic, each corporations mentioned on Tuesday, as the field consolidates, in step with Reuters.
China’s pig breeders and the corporations that serve them were hit via falling hog costs, shrinking call for, mounting losses and emerging money owed after years of fast modernisation and competitive growth of herds.
Aonong has been promoting off stakes in itself or in subsidiaries to lift money, and its debt-to-equity ratio reached a hefty 8.26 within the 3rd quarter, LSEG information confirmed.
In filings to Chinese language bourses, the corporations mentioned negotiations will resolve the precise dimension of any stake acquire in Xiamen Aonong funding.
One at a time, Dabeinong signed a letter of intent to shop for or spend money on Fujian Aonong Organic property price as much as 600 million yuan ($83.69 million).
“At the moment, the pig breeding business as an entire is at a low level and the location has endured for a very long time,” Dabeinong mentioned in a submitting to Shenzhen Inventory Alternate.
Even if the hog sector has weighed on Aonong, it mentioned different portions of the corporate had “higher funding worth”.
($1 = 7.1697 Chinese language yuan renminbi)