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在线翻译:
szdaily -> Markets -> 
Kam Fung in talks for Spain’s meat producer
    2018-04-19  08:53    Shenzhen Daily

CHINA’S Kam Fung Group Co. is in talks to acquire the bulk of Incarlopsa, in a deal that would value the Spanish meat producer at 1 billion euros (US$1.2 billion), people with knowledge of the matter said.

The potential deal comes as Chinese investors are gradually renewing their interest in overseas acquisitions as the government begins to ease tough currency controls it introduced to limit capital flight in late 2016.

Kam Fung, a privately held Chinese investment firm, is looking to buy a 95 percent stake in Incarlopsa, which is controlled by the Loriente Piqueras family and has nearly 200 million euros in debt, said one of the people. The family would keep the remaining shares.

Emilio Loriente, chairman and one of the founders of Incarlopsa, acknowledged the interest of foreign investors, but said he was not actively seeking a sale of his company.

The firm is not currently carrying out any sales process but is listening to interest from potential suitors from China, Russia and the United States amongst others, Incarlopsa said.

The 40-year-old Incarlopsa, which produces sausages, ham and other pork products, made 75 million euros in earnings before interest, tax, depreciation and amortization (EBITDA) last year, two of the people said.

The proposed deal price would give the Tarancon-based firm an enterprise value — equity plus debt — of 16 times EBITDA, compared with the European industry average of around 10 times.

It would be the latest in a series of deals by Chinese investors for a top Spanish meat producer, as they look to meet growing demand from consumers in China.

Kam Fung focuses on property investments in China, according to its website, which makes no mention of expertise in meat production and distribution.

Set up in Guangdong in 1992, Kam Fung has total assets worth over 10 billion yuan (US$1.6 billion), its website shows.

It has been tapping several banks for deal financing, but some lenders have voiced concerns over Incarlopsa’s heavy reliance on Spanish supermarket chain Mercadona for revenues, two people said. (SD-Agencies)

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