Gao Feng, 44, former executive chairman of Dukang Distillers. NextInsight file photoThere will be a new controlling shareholder at Dukang Distillers after Gao Feng sells all his 350 million shares amounting to nearly a 44% stake.With that, Gao Feng would be giving up his last link with the company.
Earlier, in March 2013, citing health reasons (from over-drinking?), he stepped down as the Executive Chairman. In May 2013, he resigned as an executive director.
Dukang Distillers said that on 7 August 2013, Profit Crest International (which is wholly owned by Gao Feng) had entered into conditional sale and purchase agreements to dispose of all shares in Dukang Distillers held by Profit Crest.
That would net him S$166 million.
This was his first and only sale since the company's IPO in 2008. His shares will now go to:
> Kaifeng Tian Feng Mills, which is buying 114,484,489 ordinary shares, amounting to a 14.34% stake, for S$54,288,544.68.
This is equivalent to 47.4 cents a share.
A person named Dou Wu was cited in Dukang's announcement as having a 20% shareholding interest in Kaifeng and is thus deemed to be interested in the shares by virtue of Section 4 of the Securities and Futures Act (Chapter 289 of Singapore).
No other person was named, so it follows that Kaifeng has several other shareholders who hold stakes below 20% in Kaifeng.
Kaifeng was previously a supplier of grains as raw materials for the production of Dukang's baijiu.
> Treasure Winner Holdings, which will buy 235,515,511 shares in Dukang amounting to a 29.5% stake for S$111,681,455.32.
This also is equivalent to 47.4 cents a share.
Treasure Winner Holdings Limited is wholly-owned by Wang Peng, who is also the Deputy Executive Chairman and CEO of Synear Food Holdings, another SGX-listed company.
This also is equivalent to 47.4 cents a share.
Treasure Winner Holdings Limited is wholly-owned by Wang Peng, who is also the Deputy Executive Chairman and CEO of Synear Food Holdings, another SGX-listed company.
According to Synear's annual report, Wang Peng is responsible for planning the sales and marketing strategies and overseeing the operations of Synear, which produces quick freeze food products such as dumplings.
Neither Dou Wu nor Wang Peng has a seat on the board of Dukang currently.
Investors and fund managers at a bottling line at Dukang Distillers. NextInsight file photoMeanwhile, it's notable that Dukang's substantial shareholders include David Loh and Han Seng Juan who, through an investment vehicle, jointly own 49.5 million shares of Dukang, or a 6.20% stake, according to the FY2012 annual report. The pair who are cousins -- once known as the A-Team at stockbroker UOB Kay Hian for their deal-making prowess -- has held the shares since IPO.
Since its IPO, Dukang's market cap has grown from S$193.8 million to S$347.3 million based on the recent stock price of 43.5 cents.
It trades at a trailing PE of 5X.
Though Gao Feng was the controlling shareholder and the executive chairman, it is the deputy executive chairman-cum-CEO Zhou Tao who is seen as driving the business to greater heights.
Zhou Tao was appointed executive chairman (and remains as the CEO) after Gao Feng stepped down.
A key recent development: Dukang's baijiu was endorsed by China's Ministry of Foreign Affairs as one of the official baijiu drinks to be served to foreign dignitaries. This is a testament to Dukang's brand backed by its rich history and heritage.
Zhou Tao was appointed executive chairman (and remains as the CEO) after Gao Feng stepped down.
A key recent development: Dukang's baijiu was endorsed by China's Ministry of Foreign Affairs as one of the official baijiu drinks to be served to foreign dignitaries. This is a testament to Dukang's brand backed by its rich history and heritage.
Dukang was the first, and remains the only, PRC baijiu enterprise listed overseas.
