Chinese animal feed and hog producer New Hope Liuhe plans to sell off majority stakes in two of its units, raising CNY4.2 billion (US$589.1 million), according to a Reuters report.
The company, which has suffered months of losses from pig farming, is looking to replenish capital after reporting losses of CNY3.88 billion in the first three quarters of the year, Reuters said.
The company said it would sell a 51% stake in its poultry breeding and processing business, Shandong Zhongxin Food, to state-owned China Animal Husbandry Group for CNY2.7 billion in cash. New Hope Liuhe will also sell a 67% stake in its Beijing food processing unit for CNY1.5 billion to Hainan Shengchen Investment Co., which is owned by New Hope Group investment arm New Hope Investment Group. New Hope Group is the parent company of New Hope Liuhe.
According to Feed Strategy’s Top Feed Companies database, New Hope Group is the world’s largest animal feed producer, with 28.22 million metric tons of feed produced at its 200 feed mills in 2022. The enterprise operates across China and 30 other countries, primarily in Asia. New Hope Liuhe comprises the vast majority of New Hope Group revenues, controlling hundreds of branch and subsidiary companies engaged in animal feed, livestock breeding and raising, meat processing and financial investments. New Hope Liuhe also focuses on chicken breeding and processing, with additional agricultural ventures in swine and dairy production, according to WATTPoultry.com’s Top Poultry Companies database.