Wens Foodstuff to acquire 91.38% of Yuncheng Herui for $2.2B

Wens Foodstuff Group Co., Ltd. (SZSE:300498) announced its plan to acquire a 91.38% stake in Yuncheng Herui Environmental Technology Group Co., Ltd. for approximately ¥160.97 billion (approximately $2.2 billion USD). The acquisition will be funded using proceeds from a convertible bond issuance and the company's own funds. Wens Foodstuff currently holds an 8.62% stake in Yuncheng Herui through a subsidiary. Upon completion, Yuncheng Herui will become a wholly owned subsidiary. The transaction has been approved by the board and supervisory committee and is subject to shareholder approval. The acquisition price was determined through a valuation conducted by Zhongshui Zhiyuan Assets Appraisal Co., Ltd., which utilized both the income approach and asset-based approach, ultimately selecting the latter for final valuation. The acquisition is expected to create synergies and enhance Wens Foodstuff's environmental protection capabilities.