Parent company Legend Holdings announces series of equity repurchases, share transfers, and incentive grants as it readies for future listing
Legend Holdings has announced its subsidiaries Joyvio and Joy Wing Mau will engage in a series of equity repurchases, share transfers, and incentive grants in a bid to update the ownership structure of their fruit segment and prepare Joy Wing Mau for an IPO, according to a report from TipRanks.
As part of the move, Joy Wing Mau will repurchase a 14.13 per cent stake from several financial investors, setting aside a portion as management incentive shares. Joyvio Agricultural Investment will also increase its holding in Joy Wing Mau to about 44.32 per cent and Joyvio Industrial Development will acquire an additional 10.65 per cent in Bountifresh, boosting its combined stake to about 76 per cent.
In addition to the acquisitions, the parties have also signed an agreement outlining Joy Wing Mau’s listing objectives and exit mechanisms for investors. The TipRanks report said it signalled a clearer path to capitalisation and potential future listing on the Hong Kong Stock Exchange (HKEX), strengthening Joyvio’s strategic position in the fruit industry value chain.
However, given the significant uncertainties surrounding the listing of agricultural companies on HKEX, Legend Holdings said it required a commitment regarding the listing. If Joy Wing Mau fails to complete its qualified listing application by 30 September 2027, and achieve listing by 31 December 2027, the group has the right to choose to fully exit Joy Wing Mau through a management buyback programme. As a reciprocal condition, management also requires that it retain a subordinated selling option should the group waive its pre-emptive selling option.
Joyvio Group and Joy Wing Mau announced a strategic merger on 16 December 2015, becoming China’s largest fruit enterprise with operations spanning the entire value chain. At that time, the group proposed the idea of listing on the stock market. In 2019, Joy Wing Mau began preparations for an A-listing on the Shenzhen Stock Exchange, but the move failed to proceed as scheduled, with Legend Holdings citing multiple internal and external factors. Shareholders also rejected a plan to list on HKEX at the time.
In its announcement, Legend said this has prevented the “effective realisation of Joy Wing Mau’s corporate value, leading to a strong desire among certain shareholders to exit”.
Joyvio and Joy Wing Mau’s management team, after multiple rounds of thorough discussions, have proposed to facilitate the exit of certain shareholders from Joy Wing Mau and Bountifresh through the announced acquisition.
“Failure to negotiate an exit arrangement would impact the decision-making and implementation of the next strategic development plan for both Joy Wing Mau and Bountifresh,” Legend Holdings said.
