The announcement stated that the acquisition provides the group with a prime opportunity to enter the Australian frozen food market
Nissin Foods announced the company (as the buyer) entered into a share purchase agreement with the sellers (Gaoyang Family and Min Investments). Under the share purchase agreement, the sellers conditionally agreed to sell, while the company conditionally agreed to purchase the shares for sale (i.e., 100 per cent of the issued capital of ABC Pastry), for 33.7 million Australian dollars (equivalent to approximately 0.179 billion Hong Kong dollars).
Regarding the acquisition, at the same time as signing the share purchase agreement, the company (as the grantee) and the land sellers (as the grantors) also entered into an option agreement, whereby the land sellers granted subscription options to the company, and the company has the right to require the land sellers to sell the property to the company (or its nominee).
ABC Pastry is a leading frozen dumpling manufacturer, with its company brand (i.e., Tianshun Food) or third-party brands in Australia. Its products include dumplings and xiaolongbao (also known as soup dumplings), distributed to food distributors, Asian grocery stores, contract manufacturers, and supermarkets across Australia. Tianshun Food is a nationally renowned high-quality dumpling brand. For the year ending June 30, 2024, its revenue is approximately 15.2 million Australian dollars (equivalent to about 80.6 million Hong Kong dollars). As of the date of this announcement, it is wholly owned by the sellers.
The announcement stated that the acquisition provides the group with a prime opportunity to enter the Australian frozen food market. Due to the increasing number of Asian immigrants to Australia, the size of the Australian frozen food market is expected to grow significantly, especially the frozen dumpling market. Additionally, driven by busy lifestyles and the demand for international delicacies such as Asian cuisine, there is an increasing demand for convenient high-quality frozen food. This trend is expected to continue, offering extensive expansion opportunities in the Australian high-quality frozen food market.
