AIM shell in China food deal

12/11/2007 Robert Tyerman

Investment newcomer Vestpa plans to buy condiments and animal feed group Full Fortune Holdings and change its name to China Food Company.

Vestpa, which raised £23 million at 1p in a June float on AIM, has provisionally agreed to pay £25 million cash and £5 million in shares for Full Fortune, a Singapore holding company whose subsidiaries, Fu-Rich, Fuss feed and Fuss Biotech, operate out of Weifang City and Shouguang City in the Chinese province of Shandong. Vestpa, whose boss John McLean is a proposed chairman of the newly enlarged group, proposes to accompany this move with a one-for-40 share consolidation and a £5 million share issue at 30p, handled by broker and nominated adviser Strand Partners.

Full Fortune’s director Raphael Than Wai Mun is proposed as the new group's chief executive officer and the group has recently been growing at a brisk pace. The company increased pre-tax profit from £2.6 million to £6.1 million between 2004 and 2006 on turnover up from nearly £9 million to £19.3 million and is bullish about current prospects.

Vestpa's shares now stand at 1.88p ahead of the acquisition, consolidation, name change and share issue, with a present AIM value of £7 million.

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