Japfa sells 25% stake in AustAsia to Meiji for $362.97m

The agri-firm will own a 75% stake in its dairy farm operator.

Agri-food company Japfa will sell 25% of its share capital in AustAsia Investment (AustAsia) to Japanese food firm Meiji Group for $362.97m (US$254.4m), an announcement revealed. AustAsia operates Japfa’s dairy farming business in China.

Following the completion of the transaction, Japfa will own a 75% stake in AustAsia and will continue to manage AustAsia’s farming operation. The firm said that this strategic partnership will bring support to Meiji’s expansion plans for China.

The closing of the transaction is subject to the satisfaction of conditions precedent including Japfa’s shareholders’ approval. Japfa will apply the proceeds of the transaction towards the repayment of the $360.99m (US$253m) term loan.

Credit Suisse (Singapore) is the exclusive financial advisor to Japfa for this transaction.