China Food Company, a Chinese manufacturer of cooking dipping sauces, has sold its animal feed business to Korean-owned Wisehand Planning for US$16 million, according to reports.
In the breakdown of the sale, the business will be sold for $8.75 million, a new feed factory will be sold for $5.5 million and the land on which the factor is being built will be sold for $1.75 million. “The board is pleased with the progress of the disposal of the feed business at a reasonable price despite the depressed stock markets,” said John Mclean, chairman of China Food. “As a result of the disposal, the company will be able to focus on its core condiments business and the proceeds of the disposal will be used for working capital and restructuring the group’s lending facilities.” The transaction is expected to be completed by July 30.
