SGX-listed Sino Grandness looking to list subsidiary Garden Fresh in HK
It needs an additional platform to tap capital.
Mainboard-listed Sino Grandness Food Industry Group has submitted an application on March 31 to the Hong Kong Stock Exchange (HKSE) to list its wholly owned subsidiary Garden Fresh Group. DBS is the sole sponsor of the listing.
Upon completion of the spin-off, Sino Grandness is expected to directly own 63.96 per cent of the issued share capital of Garden Fresh, the HKSE application documents show.
At the same time, bondholders of Garden Fresh, which include Goldman Sachs, have the option to exchange 370 million yuan (S$77 million) worth of convertible bonds into shares of the newly-listed company.
There are also plans to change the name of Garden Fresh to "Grandness Group" or any other name Sino Grandness deems appropriate, Sino Grandness said in its March 31 announcement.
Sino Grandness began as a canned food producer catering mainly to Europe. It then ventured into the beverage business after getting listed on the Singapore Exchange (SGX), first introducing loquat juices under the Garden Fresh brand in 2010. Garden Fresh now accounts for about 70 per cent of Sino Grandness' turnover.