AllBright advised SMA[600073] on acquiring Silver Fern Farms
2016-09-2213969On September 19th, 2016, Overseas Investment Office (OIO) of New Zealand eventually granted its consent to SMA’s acquisition of New Zealand’s largest meat processing and marketing company, Silver Fern Farms Limited (SFF).
Shanghai Maling Aquarius Co., Ltd. (SMA, a public company listed on Shanghai Stock Exchange, 600073) announced on September 14th, 2015 that it entered into transaction under which it would, through its wholly owned subsidiary Shanghai Maling (Hong Kong) Limited, acquire 50% rights of and interests in all operating assets and businesses of SFF and its subsidiaries and the consideration would be around NZD 261 million. This transaction will be one of the biggest M&A transactions in New Zealand. AllBright, acting as SMA’s Chinese legal counsel, provided full-scope legal services for this acquisition.
So far, this transaction has obtained the approval of the Shanghai local offices of the National Development and Reform Commission and the Ministry of Commerce, and the filing of concentration of undertakings has already been accepted by MOFCOM. Now, with the obtaining of OIO consent, all conditions prior to the completion of this transaction have been satisfied and the transaction is expected to close in early January 2017.
SMA is primarily engaged in the processing, manufacturing, sale and distribution of various food products and is one of the largest beef processors in China. SMA has many famous brands, such as Maling and AISEN. SFF is New Zealand’s largest livestock processing and marketing company, and the second largest exporter of agricultural products in New Zealand. What’s more, SFF enjoys the biggest share in beef market and second biggest share in sheep market, with its products exported to more than 60 countries. Once this transaction is completed, SMA will have a steady access to at least 25% of the high quality beef and sheep supply in New Zealand, and is therefore going to achieve great-leap-forward development. This acquisition will expand SMA’s market share in the global red meat market.
AllBright team for this transaction includes partner Weibin Wang, senior associate Emma Pang (leading counsel), Shaw Wang, John Wu, Alex Song, Shaw Howe, and intern Beni Zhang.
