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Hong Kong company invests in Kailis Bros
Two large firms have advised on Legend Holdings’ investment in an Australian seafood business.
Felicity Nelson
Firms: Minter Ellison (Legend Holdings); King & Wood Mallesons (Kailis Bros)
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Deal: Legend Holdings Corporation completed an investment in a Kailis Bros business.
Value: Undisclosed
Area: M&A
Key players: Minter Ellison’s team was led by partner and China FDI Group leader Adam Handley (pictured) and special counsel Bryn Davis, who were supported by partner Gemey Visscher, executive director of the China FDI Group and special counsel Lili Pan, special counsel Tighe Whelan, associate Matthew Caddy and lawyer Su Ern Lee.
KWM’s team was led by Nigel Hunt.
Deal significance: On 31 March, Hong Kong-listed Legend Holdings Corporation completed its 90 per cent investment in the Kailis Bros Australian wholesale, processing and export seafood business.
With members of the Kailis family retaining 10 per cent and significant day-to-day operational involvement, the deal again highlights the benefit of China and Australia partnering in the agribusiness sector.
Legend Holdings is best-known for its IT business, including the brand Lenovo. It also has an agricultural arm called Joyvio, which is one of China’s biggest fruit companies.
This strategic investment reflects Legend Holdings' continuing commitment to expanding its agricultural business operations and the benefits that can flow from foreign partnership, according to Minter Ellison.
The strategic investment was the result of a lengthy competitive bid process and involved conducting detailed due diligence on the operations of the target business, and the negotiation of complex transaction documents.
Mr Handley said the success of the investment is another great example of cooperative long-term partnerships between China and Australia in the agricultural sector.
"As a foreign investor, Legend Holdings acknowledges the significant investment opportunities that exist within Australia's agribusiness market, and in particular the enormous opportunities for the newly capitalised business of Kailis Bros to develop and expand throughout Australia."
The investment was subject to Foreign Investment Review Board approval, which was obtained by Legend Holdings in February.
