Xinsheng Group acquired VV284 million shares for 955 million yuan

On August 2 this year, Xinsheng Group and VVFB Limited (hereinafter referred to as "VV Group") signed the "Share Transfer Agreement" to acquire 284 million shares of the listed company VV Food & Beverage Co.,Ltd. (hereinafter referred to as "VVFB") held by it at a price of 955 million yuan。

After the acquisition, Sunsheng Group holds 17% of the shares of VVFB's listed company, becoming its largest shareholder.

On September 18 this year, all the equity transactions were completed; On October 8, Sunsheng Group nominated two directors to VVFB's board of directors。

Just now, the State-owned Assets Supervision and Administration Commission of Xuzhou Municipal Government held a press conference to introduce the relevant situation of Xinsheng Group's acquisition of VV equity。

Xinsheng Group

Xinsheng Group was established in 2007, registered capital of 4 billion yuan, is a large state-owned enterprise。

In 2018, Xinsheng Company was restructured and integrated to establish Xinsheng Investment Holding Group Co., LTD., which is mainly engaged in three core business segments: urban construction, urban service and urban industry。

VVFB

VVFB, founded in 1994 with a registered capital of 1.672 billion yuan, is a private enterprise mainly engaged in food and beverage production。

The company was listed on the main Board of the Shanghai Stock Exchange in 2000, stock code 600300, stock abbreviation "VVFB"。

The company is mainly engaged in the production and sales of soybean milk powder, vegetable protein drinks (liquid soybean milk), dairy products, liquor, tea and other series of products, as well as grain acquisition, storage and processing business. The main products are VV Soybean Milk Powder Series and vegetable protein drink (liquid soy milk) Series products, "VV Liuchao Pine" flour series products, "Tianshan Snow Series: Naturally good milk Tianshan Snow, "Zhijiang" wine series products and "Yiqingyuan" tea series products.

The total assets of the company are about 8 billion yuan, the net assets are about 3 billion yuan, and the annual operating income is about 5 billion yuan。

Acquisition of VV equity，

Xinsheng Group is based on what considerations？

post-acquisition，

What are the development plans of Xinsheng？

Keep looking down～

The acquisition of VV equity, Xinsheng Group is based on what factors to consider？

First, it conforms to policy guidance and requirements。

The State-owned Assets Supervision and Administration Commission of the State Council made it clear in November 2018 that the mixed ownership reform itself should be a two-way street, both boldly introducing and encouraging non-public capital to participate in the reform of state-owned enterprises, and actively going out to support and help the development of non-public enterprises。

At the same time, the relevant national, provincial and municipal food industry policy documents also support state-owned enterprises to play a greater role in the bigger and stronger food industry。

Second, it conforms to the overall planning and development of Xuzhou City。

Xinsheng Group is the largest capital platform of the city's state-owned assets, and the main body of the implementation of the overall development plan of Xuzhou City. Agriculture and grain have always been the pillar industries of Xuzhou City, and expanding and strengthening the grain industry is an important part of Xuzhou's overall development plan。

VVFB is a national key leading enterprise of agricultural industrialization, with a complete grain, oil and food industry chain, with the basis for high-quality development. At present, the bottleneck and short board encountered by the enterprise in the development of the grain sector can be fully made up by the leading advantage of state-owned assets。

Complementary advantages can open up the upward channel for VVFB food industry, and create a 100-billion-level food logistics industry cluster planning in Xuzhou, with promising prospects。

Third, the need to promote the reform and development of Xinsheng Group。

Xinsheng Group is currently in a critical period of market-oriented transformation and development. Through this acquisition, we can learn from the mature market operation and standardized management experience of listed companies to enhance the marketization operation ability of Xinsheng Group。

In addition, we can learn from the experience of capital operation of listed companies to lay the foundation for Xinsheng Group to promote industrial listing。

Fourth, we are optimistic about the long-term development of VVFB。

VV is a well-known brand, adhering to the concept of health, the production of high-quality products, has 30 years of market accumulation, has a strong market competitive advantage。

VVFB has been operating relatively steadily for many years, without major financial and legal risks, and its traditional main product, soybean milk powder, has maintained its leading position in the industry for many years。

VVFB made a plan to "return to industry and focus on the main business" in 2016, and established a strategy of "ecological agriculture, big grain, big food". While gradually shedding non-related businesses, VVFB consolidated its market share in soy milk powder, and actively developed new products and new businesses in vegetable protein drinks (liquid soy milk). And vigorously develop grain acquisition, storage, processing, trade and health food production, forming a "one and two wings, dual-core drive" strategic layout, and "from the field to the people's table" the whole industry chain.

With the implementation of the new strategy, its growth is expected。

What is Sunsheng's development plan after acquiring VVFB？

One is to participate in VVFB corporate governance。

At present, Xinsheng Group has recommended two directors to join VVFB's board of directors, which is conducive to VVFB's optimization of corporate governance structure, standardized management and operation, and guarantee the healthy development of the company in the future。

Second, give full play to each other's advantages and carry out industrial and capital cooperation。

As a large state-owned enterprise owned by the city and a first-class urban construction service operator, Xinsheng Group has its own advantages in policy resources, asset scale, urban construction, urban services, urban industries and other aspects, and can also assist Weiwei to do a good job in land operation。

VVFB, as an A-share listed company, has its own market competition in the capital market, food industry, food and beverage industry, etc。

In the future, the two sides can complement each other's advantages, cooperate on industrial investment, asset integration, asset listing and other aspects, help the development of each other's industries, jointly achieve business transformation and upgrading, and enhance the overall strength。

Text: Zheng Wei

Photo: Li Yadong

Editor: Liu Yuan

Xuzhou published 2019-11-21