Uni-President to sell JV stake

The Hong Kong-based food company Uni-President China Holdings said Tuesday it would sell its 47.83 percent stake in the Beijing-based Jinmailang Beverage Co with the intent of more efficiently using assets.

This decision pulled down the closing share price of Uni-President China by 0.725 percent, while its main rival Tingyi (Cayman Islands) Holdings Corp, also listed on the Hong Kong Exchange, saw its closing price increase by 1.37 percent.

Uni-President China is undergoing negotiation with some potential third-party buyers but has not concluded any concrete deals yet, according to an announcement the company posted on the Hong Kong Exchange Tuesday, adding only that the goal was to use assets more efficiently.

Yan Qiang, an industry analyst from Adfaith Management Consulting, attributed the sale to Jinmailang's underperformance and Uni-President's disappointed hopes of expanding into China's northern beverage market.

Jinmailang was created as a joint venture between Uni-President and the Japanese-invested Nissin Jinmailang Foods Co in 2006.

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