Asia Distribution Solutions is acquiring part of the intellectual property and assets of Gao Li Yuan Beverage Co through a joint venture company.
ADSL will own 65% of the joint venture, which is with Robert Ling. He is one of the current owners of Gao Li Yuan Beverage, which has agreed to deregister its business with the Chinese authorities. This business had been losing money.
The initial payment is RMB1m with a further RMB1m payable in shares to Robert Ling depending on profit performance in the period to the end of 2010.
The business distributes branded juice, coconut drinks, yogurt and bottled water in Sichuan Province. Following the deal it will distribute other drinks products that ADSL already handles elsewhere in China.
ADSL’s shares started trading on Aim on 7 November at a price of 29.5p and they have spent most of their time since then at the same price.
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