CEO welcomes Chinese investment in Buderim Ginger
THE CEO of the Buderim Group says Chinese investment in the company should be cause for optimism not hysteria.
The company announced via a statement to the ASX today it would raise a total of $26.1 million by selling a 23% stake to Asia Mark Development Limited and Wattle Hill RHC.
Asia Mark is a business associate of QiaQia Food Co which is publicly listed on the Shenzen Stock Exchange and Wattle Hill is a private equity firm which invests in businesses that benefit from China's growth.
Buderim Group CEO Roger Masters said the purchase would not give the companies control of the board.
"Why do people feel threatened when a Chinese company buys shares in us?" he asked.
"We've been looking around for investment for a long time and in the past few years we've gone from having an old tired brand to a strong product."
Mr Masters pointed towards recent successes - the companies ginger beers are now stocked by the major supermarkets and their alcoholic versions have found their way into nationwide liquor stores.
He said the additional investment would enable the company to upgrade its factories, which include the Buderim Ginger factory in Yandina on the Sunshine Coast, another ginger factory in Suva in Fiji, and macadamia farms and factories in Alstonville in New South Wales and on the island of Kona in Hawaii.
Mr Masters also said the move would enable the business to chase a bigger share of the Chinese retail sector.
The company employs about 60 people on the Sunshine Coast and 460 worldwide.