Fujian Sunner to set up JV with Leges Corporation
Beijing. December 7. INTERFAX-CHINA - Shenzhen Stock Exchange-listed Fujian Sunner Development Co., Ltd (Fujian Sunner), one of China's biggest chicken producers, announced Dec. 6 that it will establish a joint venture (JV) with Leges Corporation in Fujian Province to supply chickens to McDonald's Corporation.
According to the announcement, the JV, named Fujian Fusheng Agriculture and Livestock Development Co., Ltd, will have a total registered capital of RMB 200 million ($30.09 million).
Fujian Sunner will inject RMB 102 million ($15.34 million) into the JV and hold a 51 percent stake. Leges Corp. will hold a 49 percent stake for a consideration of RMB 98 million ($14.74 million).
The new JV will have an annual production capacity of 60 million chickens by 2014, bringing Fujian Sunner's total production capacity to 192 million chickens.
Fujian Sunner is already a major poultry supplier to KFC Corporation in China. It posted sales revenue of RMB 866.82 million ($130.40 million) in the first half (H1) of 2010, up 45.08 percent year-on-year.
Its net profit for H1, 2010 fell 15.73 percent year-on-year to RMB 67.56 million ($10.16 million).
Fujian Sunner's shares resumed trading on the Shenzhen Stock Exchange on Dec. 7 after being suspended the previous day because of the deal. The shares closed at RMB 33.23 ($4.99) on Dec. 7, up 2.56 percent from Dec. 5.
- Li Xin