Comprehensive M&A data with integrated detailed company information

JYG to purchase Quixote Wine
Posted on Friday, 11 August 2017 08:44
Jilin Yatai Group (JYG) is acquiring 52.0 per cent of Quixote Wine in a deal worth CNY 97.34 million (USD 14.59 million).

The purchaser, which is carrying out the transaction via its retail unit Jilin Yatai Supermarket, is hoping to enhance its competitiveness in the alcoholic beverage sector as a result of the deal.

Shanghai Fosun Pharmaceutical Group and Beijing Huachen Weiye Investment Management Centre, which currently control 46.0 per cent and 6.0 per cent stakes in the target, respectively, are offloading their entire shareholdings via the deal.

Quixote’s remaining stockholder, Beijing Dongfang Xinda Asset Management Corporation, will retain its 48.0 per cent interest.

Established in 2013, the target primarily imports and sells wine produced in California, the US.

Listed on the Shanghai Stock Exchange, JYG is a conglomerate that is engaged in a range of businesses, from cement manufacturing and real estate development to fashion and department stores operation.

It posted revenue of CNY 11.01 billion in the 12 months ended 31st December 2016, down slightly from the previous year.

Net profit for the period totalled CNY 151.93 million, up considerably from a net loss of CNY 189.59 million during the same period of 2015.

The deal comes just over a month after JYG announced a series of investments, including its agreement to invest CNY 300.00 million and CNY 375.48 million in concrete maker Yatai Group Changchun Building Materials and pharmaceutical manufacturer Jilin Yatai Mingxing Star Pharmacy, respectively, via two separate private placings.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 23 other deals targeting wine distributors announced or completed worldwide in 2017 to date, with the largest being Tong Liang’s HKD 226.20 million (USD 29.02 million) agreement to purchase 24.8 per cent of DeTai New Energy Group.

© Zephus Ltd