An investor consortium including Capital Group and Blackstone Group (BX.NYSE) has invested US$600 million in China Shouguang Agricultural Product Logistics Park, the Wall Street Journal reported, citing a source familiar with the deal. The consortium has taken a combined 30% stake in Shandong-based China Shouguang prior to the planned US$700 million initial public offering in Hong Kong planned by China Shouguang’s parent, Dili Group Holdings. The investment in agricultural logistics come as demand for Chinese fruit, vegetables and by-products are set to increase both domestically and abroad, driven in part by rural-to-urban migration. China Shouguang expects the center’s annual trading volume to reach 10 million metric tons after completion.
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