Master Kong Sell 11.61% of Weiquan Share

By CnAgri2012-10-08 14:12:46 Print

Master Kong has announced that, it would sell the held 11.61% of Weiquan shares to its parent company Ting Hsin Group, the sale price was 62.255 million US dollars. This is the second time for Master Kong to strip Weiquan assets, and this move is considered as a signal that Master Kong focuses on main business such as instant noodles, and drinks by the industry.
"Stripping non-performing sector and increasing investment in high-quality assets are a universal means of the current food companies", said by Zhu Danpeng - researcher of Chinese Food Business Institute to the reporter, along with the development of Bright Dairy and Yili, Weiquan has lost its core competitiveness force. Because of its strategic contraction, the scale effect and profit effect were lost, and also became the burden for Master Kong. Instant noodles, drinks, and other core business have always been the high-profit and high-quality assets for Master Kong, after stripping non-performing assets, and it is bound to be more focus on the core business in the future.

From “China Grains Market Weekly Report”