(Yicai Global) Sept. 5 – Yesterday, Hunan Dakang International Food and Agriculture Co. [SHE:002505] issued an announcement revealing its plans to establish a Sino-Brazilian agricultural development investment fund of USD1 billion jointly with Haitong Securities Co [SHA:600837].
The fund mainly deals with M&As of Brazilian agricultural companies as well as investments in warehouse logistics and deep processing of agricultural products of Brazilian agricultural companies. It will also develop agricultural financial services.
The capital invested by Dakang Farming would not exceed 20 percent of the total fund. The corporation's stocks will resume trading on September 5.
Dakang Farming spent USD200 million in June this year, to acquire 57.57 percent of the equity of Fiagril, a Brazilian grains company.
Headquartered in Shanghai, Dakang Farming mainly deals with the import and export of agricultural products. The corporation focuses on the "One Belt, One Road" initiative by acquiring quality agricultural food resources by global mergers and acquisitions for the domestic market.
Founded in 1988, Haitong Securities is one of the largest securities companies in China. Since 2007, it has been ranked the second in domestic securities companies in terms of its total and net assets.