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Beef company stake sells for $140m
A global firm advised on one of the first agribusiness investments under the China-Australia Free Trade Agreement.
Lara Bullock
Firms: King & Wood Mallesons (Bindaree Beef); Wong Partnership, Zhong Lun and Baker & McKenzie (Shandong Delisi Food Co)
Value: $140 million
Area: M&A
Key Players: The KWM team was led by Australian partner Shannon Finch and included senior associates Chris Carr and Intan Eow. They were supported by partners Mark Schaub, Chen Bing and Guojun Ye in Shanghai along with consultant Cai Manli and legal counsel Lin Zhijun in Beijing and associate Paul Fan in Hong Kong. Australian partners John Canning and Ken Astridge also advised on the financing aspects of the deal.
Deal Significance:
Australian producer, Bindaree Beef, sold and issued a combined 45 per cent stake in the company to one of China’s largest meat processors, Shandong Delisi Food Co, for $140 million.
The deal will enable Bindaree Beef to expand its footprint to supply premium beef markets in China and across Asia.
The deal serves as a strong example of the opportunities presented to Chinese and Australian agribusiness sectors as tariffs are reduced across a range of products under the ChAFTA, according to a release from King & Wood Mallesons.
KWM partner Shannon Finch said: “China presents the biggest food opportunity in the world, and we are delighted to have been able to assist Bindaree Beef on this important deal which extends its footprint into Asia.
“The cross-border deal is a great example of how we are able to use our Asian insights and capability to the benefit of our Australian clients, drawing from expertise across China and Hong Kong throughout the deal process.”
The deal is subject to Foreign Investment Review Board approval.
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