Shuanghui Adjusts Asset Restructuring Plan


February 17 -- Meat maker Henan Shuanghui Investment and Development (000895) adjusted the finer details of its asset restructuring plan, though the overall structure was maintained, reports, citing a company filing.

The value of the assets it will transfer out was reduced from 1.66 billion yuan to 1.46 billion yuan, while the value of the assets that will be swapped in by Shuanghui Group was lowered from 31.55 billion yuan to 25.38 billion yuan, and that of Rotary Vortex was reduced from 963 million yuan to 741 million yuan.

Following the distribution of cash dividends of 10 yuan and five yuan (including tax) for every 10 shares held in 2009 and 2010, the price at which the asset swap plan will be conducted was reduced from 51.94 yuan to 50.44 yuan.

Due to the proposed changes, the number of shares to be issued to Shuanghui Group was reduced from 574 million shares to 474 million shares, while the amount of shares to be issued to Rotary Vortex was lowered from 18.32 million shares to 14.69 million shares.

According to a previous filing, Shuanghui Investment and Development planned to swap its 85 percent stake in Luohe Shuanghui Logistics Investment for the entire equity of Shuanghui Group’s Dezhou, Mianyang, Wuhan, Huaian, Tangshan and Jiyuan branches, and the total share capital of Hongyi New Materials and Tianrun Color Printing.

In addition, it  planned to acquire a 90 percent stake in a poultry processing company and related assets, a 83 percent shareholding in Shuanghui Color Printing, and other assets from its parent.

The difference in the value between the assets to be swapped out, and those to be injected, will be made up for by an issuance of shares to Shuanghui Group.

In addition, the listed company will issue shares to Rotary Vortex in order to buy a 30 percent stake in Luohe Shuanghui Packaging, and a 30 percent interest in Shanghai Shuanghui Dachang.

Through the share swap, Shuanghui Development will obtain five companies, including Guangdong Shuanghui and Inner Mongolia Shuanghui, which were jointly held by Shuanghui Group and Rotary Vortex.

Shuanghui Investment and Development forecasts a 49.17-52.62 percent year-on-year drop in 2011 earnings to 550 million-590 million yuan, down from the 1.16 billion yuan recorded in 2010.


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