October 17, 2017 / 1:32 AM / 10 months ago

China Foods to sell wine, non-beverage business to parent for $649 million

HONG KONG (Reuters) - China Foods Ltd (0506.HK) said it would sell its wine and other non-beverage businesses to a unit of its state-owned parent COFCO Corp in a deal valued at HK$5.07 billion ($649 million) as it aims to focus on its beverage business.

The Hong Kong-listed firm will pay a special dividend of HK$0.93 per share to shareholders after the deal and use the remaining net proceeds of HK$2.47 billion to repay bank borrowings and for working capital, it said in a filing to the Hong Kong bourse late on Monday.

Beverage is the firm’s strongest performing business in terms of profitability and is carried out by COFCO Coca-Cola Beverages Ltd, a joint venture which is 65 percent owned by the China Foods and 35 percent by Coca-Cola Co (KO.N), it added.

($1 = 7.8086 Hong Kong dollars)

Reporting by Donny Kwok; Editing by Himani Sarkar

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