SOY sauce maker Jonjee Hi-Tech Industrial and Commercial Holding Co.’s controlling shareholders are considering bringing in strategic investors after purging the board backed by its previous owner, according to people familiar with the matter.

The Shanghai-listed firm’s shareholders are working with an adviser to sound out domestic and international investors, the people said.

The group, led by local government-backed Zhongshan Torch Group Co. and shareholders including CDH Investments, could agree a deal with potential strategic backers to help operate the business as soon as the end of this year, the people said.

Discussions are at an early stage and may not lead to any transactions, the people said.

The Zhongshan Torch-led group is the company’s largest shareholder with a 19.93% stake, according to Jonjee’s 2023 interim report. Zhongshan Torch and CDH took over after Zhongshan Runtian Investment Co., controlled by Yao Zhenhua, chairman of Chinese real estate and financial services conglomerate Shenzhen Baoneng Investment Group Co., reduced its holdings, the report showed.

The potential introduction of strategic backers comes amid a dispute with the former controlling shareholder. Zhongshan Runtian-affiliated directors were removed from the company’s board at an extraordinary shareholders’ meeting in July, making Yao no longer the ultimate owner of the company, according to Jonjee’s interim report.

The meeting sparked protests from Baoneng and Yao, who alleged that the July meeting was illegal and vowed to pursue the matter through the courts.

The meeting was conducted in a legal and compliant manner, and there were no instances of illegal conduct, a Jonjee spokesperson said.

Jonjee’s future development and expansion may involve the introduction of strategic investors, the company spokesperson said, adding that people should refer to its official announcements for further news.

Jonjee produces condiments including popular soy sauce brand Meiweixian in China and others including vinegar, oyster sauce and hot pot base. It owns a high-tech industrial park with more than 300 companies from over 20 countries and regions. (SD-Agencies)