C Loan Notes (3127F)
June 14 2012 - 1:00AM
UK Regulatory
TIDMCFC
RNS Number : 3127F
China Food Company PLC
14 June 2012
Press Release 14 June 2012
China Food Company Plc
("China Food" or the "Company")
C Loan Notes
China Food Company plc (AIM: CFC), a leading Chinese
manufacturer of cooking and dipping sauces, announces that,
following approval by the majority of C Loan Note holders, it has
been agreed that the C Loan Note has been rolled into the A Loan
Note.
The Company currently has GBP1.380 million of C Loan Notes
outstanding and GBP2.004 million of A Loan Notes. The A Loan Notes
are repayable on 3 November 2012.
The C Loan Note has a conversion price of 50 pence and a coupon
of 8.0% per annum. These terms have been amended to reflect those
of the A Loan Notes that carry a coupon of 10% and are convertible
at 32 pence per ordinary share.
As announced with the preliminary results in May 2012, the
Company remains in discussion with potential buyers of the animal
feed business and expects to update shareholders shortly.
- Ends -
For further information:
China Food Company Plc
John McLean, Non-Executive Chairman Tel: +44 (0) 7768 031
454
Raphael Tham Wai Mun, Chief Executive
www.chinafoodcompany.com
Numis
David Poutney - Head of Corporate Tel: +44 (0) 20 7260
Broking 1000
finnCap (Nomad)
Geoff Nash / Ben Thompson (Corporate Tel: +44 (0) 20 7600
Finance) 1658
Simon Starr (Broking)
Media enquiries:
Abchurch Communications
Henry Harrison-Topham / Joanne Shears Tel: +44 (0) 20 7398
7709
joanne.shears@abchurch-group.com www.abchurch-group.com
Notes to Editors:
China Food is a well-established food manufacturing business
based in Shandong province in the People's Republic of China, a
region with a population of circa 94 million. A recent report
identified Shandong province as one of the five most attractive
'city clusters' in China, due to the high number of large cities in
the province*. The Group manufactures numerous different product
lines including soya sauce and bean paste, all targeting the
Chinese domestic market, and sold through a network of distributors
and outlets of supermarket chains in the north-eastern region of
the PRC, such as Tesco, Walmart, Carrefour and Jialejia.
The Chinese sauces, dressings and condiments market is expected
to be worth CNY115 billion (US$15 billion) by 2013**, driven by
Chinese population growth and economic prosperity. The Chinese
domestic market is rapidly expanding, and the Group is well
positioned to benefit from China's demographic growth and increased
urbanisation.
The first phase of expansion is now complete at the Group's new
factory, which was officially opened on 12 May 2010, and this
doubles China Food's current capacity. It is proposed that in due
course there will be a further two phases, adding capacity of
100,000 tonnes through the building of 230 additional silos. The
Group plans to expand into the neighbouring provinces such as Henan
and Hebei.
The Group also operates an animal feed business, Fuss Feed. This
business produces premix, concentrate and compound feedstuffs, and
is the third largest animal feed business in Shandong, an important
province for the production of livestock in China.
The Group's operations are highly scalable and able to support
further growth, and with net assets of GBP39 million (as at 31
December 2011), the prospects for China Food are strong. Further
information on China Food Company can be found at
www.chinafoodcompany.com.
*McKinsey Quarterly Report: Is your emerging market strategy
local enough?, April 2011
** Source: Datamonitor report: Sauces, Dressings and Condiments
in China to 2013, April 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
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