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Fasken Martineau Secures £25.2M Takeover Deal for China Food Company PLC

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November 16, 2007


Fasken Martineau Stringer Saul has completed its fourth major AIM transaction in the last 4 weeks. (China Food Company PLC, Nautical Petroleum, Ninety and Jubilee Platinum) The corporate team headed by partner, June Paddock, has helped its client, AIM-listed cash shell, China Food Company PLC, in a £25.2m reverse takeover deal to acquire Full Fortune Holdings Pte Ltd.

Full Fortune is based in Singapore and its trading subsidiaries manufacture and sell consumer condiments and animal feeds under the Fu-Rich, Fuss Feed and Fuss Biotech brands in Weifang City and Shou Guang City in the Shandong province of China. 

Fasken Martineau Stringer Saul is assisting China Food Company on the acquisition by way of the issue of 40.3 million ordinary shares together with a cash payment of £5 million, the latter being raised through the issue of 16.7 million subscription shares at 30 pence per share. China Food Company is also planning a share consolidation comprising one new ordinary of share of 4 pence each for every 40 existing ordinary shares of 0.1p each.

June Paddock, partner and head of the Corporate Division at Fasken Martineau Stringer Saul, said: "This has been an exceptionally busy month or so for us in the AIM arena as this latest brief follows the successful recent negotiations for Nautical Petroleum's £20m placement as well as the recent listing of Ninety and the placement of 13 million ordinary shares for Jubilee Platinum, raising approximately £11.5m.

"Dealing with cross border jurisdictions in Singapore and China presented a number of interesting challenges that needed to be addressed within what was a very tight timetable, but the outcome for our client has been a successful one and we are proud of our contribution to what we hope is an exciting future for the enlarged group".

Going forward, China Food Company PLC will have a low level of gearing on admission to AIM and will be adopting an expansion strategy. It plans to capitalise on the existing distribution network into the multiples of China and Full Fortune is currently increasing its production capacity with the development of a new site in Shou Guang City to meet anticipated future demand.