Beleaguered China Feed Giant to Sell Business Stakes for $590 Million

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Meat producers in China have been struggling to make a profit on sluggish consumer demand amid a slower-than-expected post-pandemic recovery. Photo: Bloomberg

(Bloomberg) — New Hope Liuhe Co. Ltd., China’s top animal-feed maker and leading meat producer, is selling controlling stakes worth 4.2 billion yuan ($590 million) in two core operations to raise cash after heavy losses this year.

The company will sell 51% of its poultry business to state-owned China Animal Husbandry Group for 2.7 billion yuan, and 67% of its food processing unit to Hainan Shengchen Investment Co. for 1.5 billion yuan, according to filings to the Shenzhen Stock Exchange Friday. Hainan Shengchen is an investment platform under the parent company New Hope.