Ann: Trading Halt, page-55

Bubs wins backing of Alibaba, through C2 deal


Alibaba Group co-founder and executive chairman Jack Ma. Pic: AFP

• BRIDGET CARTER
  MERGERS & ACQUISITIONS EDITOR
  @BridgetCarterb
  
• 2 HOURS AGO APRIL 1, 2019

China’s e-commerce giant Alibaba Group has emerged as a backer of Bubs, following the Australian infant formula maker’s acquisition of Deloraine Dairy.
Bubs announced the acquisition today of the Chinese-owned company and said private equity firm C2 Capital Partners would become a cornerstone investor in its business.
It is understood that one of the key shareholders in C2 is Alibaba Group
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Victoria-based Australia Deloraine Dairy is one of 15 canning facilities nationally that meets regulatory import conditions into China.
C2 will secure shares in Bubs through a private share placement at 65c per share in a move that will raise about $31.44 million.
Following the placement, C2 will also acquire additional shares in Bubs via off-market share acquisitions from existing shareholders, the NuLac Foods Vendors, providing a collective 15 per cent holding in Bubs.
Following the capital investment, C2 managing partner Steve Lin will join the Bubs board as a director.
Funds from the capital raising will be used, in part, for the Deloraine acquisition.
C2 was established last year to invest in companies capitalising on the consumption growth and consumption upgrade of the growing Chinese middle class.
Its strategy is to partner with the management of investee companies, providing value-added growth capital and to support companies with unique China market insights and know-how.
Alibaba is a Chinese multinational conglomerate that specialises in e-commerce, retail, internet and technology.
It was founded in 1999 to offer sales via web portals as well as electronic payment services, shopping search engines and cloud computing services.
It owns and operates a diverse array of businesses around the world in numerous sectors and is named by Fortune as one of the world’s most admired companies.
At closing time on the date of its initial public offering in 2014, the company’s market value was US$231bn and in December was worth US$352.28bn.
BRIDGET CARTER

MERGERS & ACQUISITIONS EDITOR
Bridget Carter is Mergers and Acquisitions Editor at The Australian, and has also covered property and construction for the newspaper for more than four years. Additionally she's written about logistics, crime,... Read more