find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Chinese consortium to buy into nutritional pharmaco

Chinese consortium to buy into nutritional pharmaco

A deed struck between vitamins and supplements company Vitaco and a Chinese consortium is the first scheme of arrangement in Australia for a non-resources sector transaction.

Firms: MinterEllison (Vitaco Holdings Ltd); King & Wood Mallesons (Shanghai Pharmaceuticals Holding Co Ltd; Primavera Capital Group)

Deal: Vitaco Holdings (Victaco) has entered into a scheme implementation deed for the full acquisition of its share capital by a Chinese consortium comprising Shanghai Pharmaceuticals (Shanghai Pharma) and Primavera Capital Group (Primavera).

Value: $313 million

Area: M&A

Key players: The MinterEllison team advising Vitaco was led by partners Michael Gajic and Daniel Scotti (pictured). Senior associate Nicole Sloggett, associate Reiteke Grosser and lawyer Jason Namkoong assisted.

The KWM team advising the Chinese consortium was led by Sydney-based partner Shannon Finch and Beijing-based partners Xu Ping and Jonathan Grant (pictured). Senior associate Clifford Sandler and lawyers Tom Harrison, Huang Yunzhu and Kenny Chen assisted the partners with other colleagues across the firm’s offices in China, Hong Kong and Australia.

Deal significance:

ASX-listed company Vitaco has announced a proposal for a consortium to acquire 100 per cent of its share capital. Under the proposed scheme of arrangement, shareholders of the vitamins and dietary supplements company will receive AU$2.25 per share, valuing Vitaco at approximately AU$313 million.

The consortium comprises Chinese companies Shanghai Pharma and Primavera. Shanghai Pharma is one of China's leading pharmaceutical companies and is listed on both the Shanghai Stock Exchange and Hong Kong Stock Exchange. Primavera is an investment firm based in Asia.

According to MinterEllison partner Daniel Scotti, attracting interest from a “high-calibre regional player” such as the Chinese consortium not long after Vitaco’s IPO showed strong business interest in the sector.

“[This deal] highlights the interest in the vitamins and supplements sector and is an excellent result for the company and its shareholders in an uncertain economic and regulatory environment,” Mr Scotti said.

“We are delighted to have acted for Vitaco on this transformative transaction,” he said.

Vitaco’s business offers vitamins and supplements, sports nutrition and health foods in the Australian and New Zealand markets. The company is involved in the development and manufacturing of “world-class nutrition products”, and is expanding its focus on offshore markets.

The deal remains subject to approval from Vitaco shareholders and relevant regulators. Shareholders will vote on the proposal in November, with implementation of the scheme expected to occur in December 2016.

KWM senior partner Xu Ping, who is based in the firm’s Beijing office, said the deal required meeting regulatory requirements in both China and Australia.

“This deal once again proves KWM’s capabilities to guide Chinese clients through the legal maze in making overseas investments and implementing their globalisation strategy,” Ms Ping said.  

KWM partner Jonathan Grant added that the transaction involved the management of complex cross-border legal, regulatory and transaction management issues.

“The KWM global team […] was able to successfully negotiate a deal with Vitaco that addressed those complex issues while delivering funding and execution certainty for Vitaco and its shareholders,” Mr Grant said.

KWM partner Jonathan Grant
L-R: MinterEllison partner Daniel Scotti and KWM partner Jonathan Grant.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Chinese consortium to buy into nutritional pharmaco
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Oct 20 2017
Podcast: One of law’s most infamous alumni – in conversation with Julian Morrow
In this episode of The Lawyers Weekly Show, Melissa Coade is joined by The Chaser’s Julian Morrow....
Oct 20 2017
High Court overturns ‘excessive’ anti-protest legislation
Bob Brown’s recent victory in the High Court over the Tasmanian government was a win for fundament...
Oct 20 2017
Changes to Australian citizenship laws blocked
Attempts to beef up the requirements to obtain Australian citizenship were thwarted this week, after...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...