Legend Holdings Ltd. has completed a takeover of Qufu Confucius Family Liquor Co., Ltd. at a cost of USD63.32 million (RMB400 million), expanding its white wine business.
Online PR News – 31-October-2012 – Guangzhou – Legend Holdings Co., Ltd. (Legend Holdings), the parent company of best-known PC maker Lenovo Group, is expanding business in agricultural industry, one of its five investment fields, according to CCM’s September issue of AgriChina Investor.
In September 2012, Legend Holdings' two investments in agricultural industry have been contracted, stimulating the market of agricultural investment. On 15 September, 2012, Legend Holdings completed the acquisition of 100% shares of Qufu Confucius Family Wine Co., Ltd. with dealing value of USD63.32 million (RMB400 million). On 16 September, 2012, Legend Holdings signed an strategic cooperation agreement with Qingdao Municipal Government for an investment program in blueberry industry with a value of over USD316.61 million (RMB2 billion) in the future five years.
The investment in Qufu Confucius Family Wine Co., Ltd. is Legend Holding's third direct acquisition in China's white wine industry. And the strategic investment in blueberry industry in Qingdao is Legend Holdings' second action in fruit industry. In May 2011, Legend Holdings founded Beijing Huaxia Liancheng Fruit Trading Co., Ltd. (Huaxia Liancheng) to develop the market of high-quality kiwi fruit products, and now the company has five kiwi fruit planting bases in Shaanxi, Henan and Sichuan.
According to the investment agreement achieved by Legend Holdings and Qingdao Municipal Government, Legend Holdings will establish Legend Modern Agriculture (Qingdao) Headquarters and invest in a series of projects in blueberry industry including new variety development, planting and processing in the future five years. Legend Holdings expects that these projects related to blueberry industry in Qingdao City could achieve profit before the holistic listing of Legend Holdings in 2014-2016.
Legend Holdings, aiming to be a leading company in modern agriculture, has made great achievement in agricultural investment since it set foot in agricultural business in 2010. In July 2010, Legend Holdings set up an agricultural department, which focuses on investment and resource integration in agricultural industry. And a series of investments have been made in fields covering white wine, aquatic feed, aquaculture as well as livestock and poultry breeding. On 9 August, 2012, Joyvio Co., Ltd. (Joyvio), reformed from Legend Holdings' agricultural department, was founded to operate agriculture-related business. And the foundation of Joyvio follows the projection schedule of Legend Holdings' medium-term development strategy made in 2010.
According to Legend Holdings' official website, Legend Holdings aims to provide consumers with safe agricultural produces/foods by integrating global resources, operating in the whole industrial chain, carrying out whole-course cold chain logistics and adopting traceable strategy. The mission of Legend Holdings' business in agriculture is to lead and drive the development of modern agricultural industry in China.
According to Legend Holdings, the company's investment in agricultural business is based on the increasing demand for agricultural produces and foods with high quality and safety in China. "With the development of economy and society of China, consumers' demand for agricultural produces/foods with high quality and safety is increasing, while the market supply is seriously insufficient. The key solution to this problem is modern agriculture, which drives China's agriculture to develop into a large-scale, standardized and branded industry.
Source: AgriChina Investor
Content of AgriChina Investor 1209:
Legend Holdings expands investment in white wine business
Yiqiao Marine Seeds: operating margin hits 53.87% in H1 2012
Three agricultural investment funds founded in Aug. 2012
Beijing DQY to build world's largest raising base for egg-laying chickens in Chuzhou
Monsod Drought-Resistance listed in Growth Enterprise Board
Medium and large-scale banks extend rural financial business
Innovation: Key word in 12th Five-Year Plan for National Rural Economic Development
12th Five-Year Plan for Domestic Trade Development released
Low market price results in low achievement in cotton stockpile in Sept. 2012
China's largest spot cotton exchange center to open in Dec. 2012
Layout of Legend Holdings' investment in agricultural business
China encounters low profitability in rice growing
ASEAN becomes China’s 2nd largest trading partner of agricultural produces
China becomes world's largest importer of agricultural produces
China to invest USD1.14 billion in agriculture produces' quality inspection and testing system
Wholesale and retail markets of agricultural produces to enjoy two tax exemption
MOA: China to ensure wheat planting area over 22.60 million ha. in 2012/2013 season
China's soybean import volume in the first eight months ups 17.4% YoY
Jilin Province promotes integrated culture in paddy field
Chuying Agro-Pastoral explores pork sales business
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