News blog

China Food Company

• BY: Andrew Hore |
• POSTED: 23/05/2014 |

China Food Company says that it may sell both of its divisions or an investor may buy a minority stake in the company.

The animal feed division has been up for sale and its management is in discussions about buying the business. There have been subsequent approaches for the condiments business or concerning investing in the holding company in return for a minority stake. Discussions have commenced about these options.

The company expects to sell the animal feed business at a premium to NAV of £3.86m. The exclusivity period with management has been extended to mid-June.

At 8.25p a share, China Food Company is valued at £5.89m.

Additional working capital is required because of weak cash flow and borrowings are likely to be increased in China.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMay2014_56.pdf