[Asia Economy Reporter Park So-yeon] SK Inc. is seeing growing expectations for an increase in the value of its equity holdings as a subsidiary of a Chinese agrifood company it invested in is preparing for an initial public offering (IPO) in China. Attention is focused on whether SK, which previously realized substantial profits as the third-largest shareholder of the Chinese logistics company ESR, will create another successful overseas investment case.
According to the investment banking (IB) industry on the 17th, Joyvio, China’s number one agrifood distribution company, is preparing for the domestic listing of its subsidiary Joy Wing Mau (hereafter JWM). It is expected that the company will begin full-scale preparations for the IPO in the second half of this year, targeting 2023.
In 2019, SK Inc. invested 213.8 billion KRW in Joybao, the parent company of JWM, securing a 14% stake. Stick Investment, a management-participation private equity firm, participated jointly with SK in the investment. JWM is a subsidiary focused on fruit distribution, which is Joyvio’s core business, and is also a granddaughter company of Legend Holdings, the parent company of Lenovo, China’s top computer manufacturer.
An SK Inc. official said, "It seems that JWM will proceed with the procedures for listing within this year," adding, "If the subsidiary’s listing succeeds, it is expected to have a positive impact on Joyvio’s corporate value as well."
JWM is China’s leading fruit distribution company, distributing 1,000 tons of fruit daily through seven large wholesale market channels. It operates 40 logistics centers and 5,000 stores nationwide and has secured 3 million customers across 80 cities. It is the first fruit distribution company in China to achieve annual sales of 5 billion yuan.
It is also China’s largest blueberry producer and a kiwi cultivation company. With growing interest in healthy eating habits in China, demand for high-quality fruits and vegetables is increasing, drawing more attention to JWM. The company is steadily expanding its business by forming strategic partnerships with global fruit and vegetable companies based in Chile and Australia.
SK Inc. plans to expand its agribusiness, one of SK Group’s new industry growth areas, through its investment in Joyvio, which has a nationwide logistics and distribution network. Recently, Joyvio also acquired a large salmon farming company in Chile.
An SK Inc. official stated, "From an ESG (environmental, social, and governance) perspective, we plan to strengthen our portfolio through a sustainable food investment strategy."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
