Bindaree Beef Group sells 51% share to Archstone Investment
The Bindaree Beef Group (BBG) announced last week that it has entered into a “strategic joint venture” with the Hui family and their investment firm, Archstone Investment. This has seen Australian property billionaire Hui Wing Mau’s company take 51% share in BBG for an undisclosed sum believed to be in the region of $100 million to 150 million.
Approved by the Foreign Investment Review Board, the founder of BBG, JR McDonald, suggested the capital provided by the partnership with Archstone Investment would allow the company to expand its operations in global and domestic markets.
“After lengthy discussions, we are delighted to have the right partner in place. Our joint vision for BBG is to create a more competitive company that can cater for both local and international markets. We will rapidly expand our reach while also upgrading our facilities, supply chain and distribution,” stated McDonald.
This comes after their deal to sell a 45% stake in BBG to Chinese-listed meat company Shandong Delisi Food Company fell through in June last year.
Archstone Investment directors commented that they were attracted to Bindaree’s established supply chain and the opportunity to further develop the family enterprise.
“The demand for beef in South East Asia and China over the next 15 years is significant and the new joint venture has the combined expertise to leverage this opportunity,” they said.
The Hui family already invests in cattle properties in the Kimberley in Western Australia, and they plan to make further acquisitions in northern NSW closer to BBG’s meatworks.
BBG’s management team, led by McDonald, have suggested they will continue to run all aspects of the company’s operations with the new partners contributing to the setting of strategy.
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