Scientific and technological innovation is an inexhaustible driving force for promoting the progress of enterprises, while strategic vision is the fundamental guarantee for the long-term development of enterprises. On the 9th of May, 2024, Shandong NewJF Technology Packaging Co., Ltd, through its wholly-owned subsidiary Jingfeng Holding Limited, issued an announcement to all shareholders of Hong Kong-listed Greatview Aseptic Packaging Company Limited in the form of a voluntary and comprehensive offer, intending to acquire all the issued shares of Greatview Aseptic Packaging Company Limited. The offer price per share is HK$2.65, and assuming the offer is fully accepted, the total offer price is HK$2.729 billion. This transaction constitutes a major asset reorganization of Shandong NewJF Technology Packaging Co., Ltd.
Shandong NewJF stated that this acquisition is beneficial for the listed company to expand overseas markets and enhance the influence of Chinese aseptic packaging brands in the international market. Before this transaction, the listed company has already become the largest shareholder of the target company. By further obtaining the controlling stake of the target company, the company will increase its control over the target company and strengthen business synergy with the target company to achieve comprehensive integration of the two companies in terms of advantageous resources, technologies, and businesses.
It is known that Shandong NewJF mainly engages in the R & D, production, and sales of aseptic packaging. The company has established long-term and stable cooperative relationships with well-known downstream liquid milk and non-carbonated soft drink producers, providing high-quality aseptic packaging for domestic well-known liquid milk producers such as Inner Mongolia Yili Industrial Group Co.,Ltd,New Hope Liuhe Co.,Ltd, Xiajin milk, Shanghai Milkground Food Tech Co., Ltd, Beijing Sanyuan Foods Co.,Ltd, Liaoning Huishan Dairy Group Co.,Ltd,Yunnan Eurasia Dairy Co. , Ltd, Lanzhou Zhuangyuan Pasture CO.,Ltd, as well as well-known non-carbonated soft drink producers such as Guangzhou Wanglaoji pharmaceutical Company Limited, Coconut Palm Group Co., Ltd, Jdb (China) Drinks Co., Ltd, Vvgroup, etc.
With high-quality products, Shandong NewJF has achieved rapid development in recent years, and aseptic packaging materials have been widely used in the products of many domestic well-known dairy enterprises and beverage enterprises, winning a good market reputation.
As one of the few local enterprises in China that can mass-produce aseptic packaging, Shandong NewJF has a relatively high position in the industry.
For many years, Greatview Aseptic Packaging has been committed to the field of aseptic packaging. With continuous technological innovation, it has developed into a provider of comprehensive aseptic packaging solutions. The company has a number of core competences in aspects such as new product research and development and production processes, such as inkjet printing and outer laminating process, metallic ink printing process, and variable printing process. These breakthroughs have gradually broken the monopoly position of foreign equipment and packaging materials, and contributed to the development of China's aseptic packaging materials and filling equipment industry.
In 2012, Greatview Aseptic Packaging set up its first overseas packaging materials factory in Halle, Germany, and continuously improved its international business layout. At present, Greatview Aseptic Packaging has set up factories, R & D centers and operation institutions in China, Switzerland, Germany and other countries, becoming a transnational manufacturer in the field of aseptic packaging in China. In recent years, under the leadership of an excellent management team, Greatview Aseptic Packaging has used digital means to continuously promote refined management and intelligent production.
Work together to create and have the potential to open up a new pattern for domestic liquid aseptic food packaging. Shandong NewJF points out that the acquisition of Greatview Aseptic Packaging will have positive impacts on multiple levels. In China's aseptic packaging industry, international giants, relying on their first-mover and scale advantages, occupy a dominant position. In 2023, the top two international aseptic packaging enterprises - Tetra Pak and SIG Group - accounted for approximately 66.1% of the sales amount in China's aseptic packaging market. In contrast, China's local aseptic packaging enterprises started relatively late and, restricted by capital strength, their market expansion is limited, and the competitive disadvantage is obvious.
In October last year, Shandong NewJF obtained 377 million shares of Greatview Aseptic Packaging through an agreement transfer, with a shareholding ratio of 28.22%, becoming the largest shareholder of Greatview Aseptic Packaging. This time, by further obtaining the control of Greatview Aseptic Packaging, Shandong NewJF will enhance its influence on Greatview Aseptic Packaging, strengthen business synergy, and realize the comprehensive integration of the two companies in terms of resources, technology, and business, forming a joint force. This is very helpful to improve the competitiveness of China's packaging enterprises and increase the market share, and create a national brand of aseptic packaging.
At the product level, in addition to the "Pillow Aseptic Package", Greatview Aseptic Packaging has richer product specifications and types of "Brick Aseptic Package", "Octagon Aseptic Package" and "Metallized Aseptic Packaging". At the same time, Greatview Aseptic Packaging is also engaged in packaging and filling solution businesses such as filling machines, accessories, and technical services, which are areas that Shandong NewJF has not yet set foot in. At the market level, Greatview Aseptic Packaging has a certain layout in the foreign market, and after the acquisition, it will help Shandong NewJF expand the overseas market and enhance the influence of Chinese aseptic packaging brands in the international market.
In addition, after the completion of the transaction, Shandong NewJF will become the controlling shareholder of Greatview Aseptic Packaging, and the financial data of Greatview Aseptic Packaging will be included in the consolidated financial statement scope of Shandong NewJF. According to the historical financial data of Greatview Aseptic Packaging, obtaining the controlling stake will help improve the continuous profitability and asset quality of NewJF, realize the maximization of the interests of shareholders of NewJF, and fully protect the interests of NewJF and small and medium shareholders.