South African fresh produce multinational Capespan has sold its interest in Chinese fruit and vegetable distributor Joy Wing Mau, divesting a 9.23 per cent shareholding valued at RMB566m (US$82.4m at the current exchange rate).
The minority stake had been in Capespan’s portfolio even before Joy Wing Mau was formed in 2015, as the company held a 25 per cent stake in Golden Wing Mau prior to the latter’s recent merger with Joyvio. Capespan said the merger subsequently diluted its share, reducing strategic influence.
Though all of Capespan’s shares have been sold to a consortium of Chinese investors, the company said the deal would not impact its commercial relationship with Joy Wing Mau.
“Since our investment in Golden Wing Mau eight years ago, our commercial partnership has outgrown our investment. Our [business] relationship has flourished because we know and trust each other, not because of Capespan’s shareholding. Joy Wing Mau remains Capespan’s commercial partner, despite the sale of our investment,” said Capespan’s managing director Tonie Fuchs.
The two companies also still remain joint shareholders and partners in JWM Asia, the Hong Kong and Tokyo-based marketer and distributor with a focus on Asia outside of China.
Mau Wah Liu, chairman of Joy Wing Mau, said that Capespan had contributed considerably to the growth of the company over the past eight years.
“I would like to thank the management team and shareholders of Capespan for their support and contribution to the development of Joy Wing Mau. We continue to see each other as strategic partners in the supply and development of the Cape and Outspan brands in China,” said Liu.
Capespan’s parent company, Zeder Investments, said it was committed to Capespan’s business, adding that the bulk of sale proceeds will be reinvested into its core business in order to stimulate growth.