(Yicai Global) Aug. 11 -- CPMC Holdings Ltd.’s [HKG:0909] indirectly wholly-owned subsidiary, COFCO Packaging Investment Co., plans to acquire a 30 percent stake in Jiaduobao Group’s Qingyuan Jiaduobao Herbal Technology Co.
The deal is still in the framework stage and specific money amounts have not yet been finalized.
The listed company will work with Qingyuan Jiaduobao’s shareholders to turn it into an operating platform focused on brand, concentrated liquids and distribution, CPMC said, adding that it will promote a strategic partnership between Qingyuan and its downstream companies if it successfully acquires a stake.
A public relations executive at CPMC decline to disclose details and told Yicai Global that it will make a public announcement. The deal will mark the holding company’s first foray into the beverage industry, the PR executive added.
Phone calls to Jiaduobao’s branding department went unanswered.
Last year has been a struggle for Jiaduobao, which lost a lawsuit against Wanglaoji and rumors suggested the company had halted production. The firm has taken action to dispel doubts but still needs time to rebuild market confidence.
CPMC’s investment in Jiaduobao will help the latter meet cash shortfalls, insiders said, but added that there could be other motives behind the transaction.