HONG KONG, March 20 China Huiyuan Juice Group
Ltd will buy 117.7 million yuan ($18.99 million) worth
of assets from Suntory (China) Holding Co Ltd as the Hong
Kong-listed fruit and vegetable juice producer expands its
product portfolio to tea and coffee drinks.
Huiyuan on Thursday said it will buy Suntory (Shanghai)
Foods Co Ltd as well as 50 percent of Suntory (Shanghai) Foods
Marketing Co Ltd.
As part of the deal, Huiyuan will issue 117.7 million yuan
worth of shares to Japan's Suntory Holdings Ltd, the
parent of Suntory (China).
Huiyuan said the deals will allow it to establish a
strategic partnership with the Suntory group for the sale and
development of Suntory brand products in China, in particular
teas and coffees.
Shares of Huiyan were down 0.6 percent at 0315 GMT compared
with a 0.8 percent fall in the benchmark index.
Huiyuan, which holds as much as 56 percent of China's pure
juice market by sales volume, on Wednesday posted a sharp jump
in 2013 net profit thanks to an improved profit margin and gains
from asset sales.
($1 = 6.1965 Chinese Yuan)
(Reporting by Donny Kwok; Editing by Christopher Cushing)