Beleaguered China Feed Giant to Sell Poultry Stake to Raise Cash
- Meat market suffers from slow recovery in consumer demand
- Sales will improve capital security and reduce debt pressure
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New Hope Liuhe Co., China’s top animal feed maker and leading meat producer, is selling controlling stakes worth 4.2 billion yuan ($590 million) in two core operations to raise cash after heavy losses this year.
The company will sell 51% of its poultry business to state-owned China Animal Husbandry Group for 2.7 billion yuan, and 67% of its food processing unit to Hainan Shengchen Investment Co. for 1.5 billion yuan, according to filings to the Shenzhen exchange Friday. Hainan Shengchen is an investment platform under the parent company New Hope.