Photo：conceptual products of NEWJF

 
Chinese packaging company Shandong NewJF Technology Packaging Co., Ltd (NEWJF) issued a voluntary comprehensive tender offer on May 9, 2024 to all shareholders of Greatview Aseptic Packaging (Greatview), proposing to acquire all issued shares of Greatview at a tender price of HK$2.65 per share through Jingfeng Holding Ltd, one of NEWJF’s subsidiaries. 

Prior to this transaction, NEWJF had already become the largest shareholder of Greatview. The aim of acquiring the controlling interest in Greatview is to strengthen business synergy with it, achieve comprehensive integration in advantageous resources, technologies and operations between the two companies, enhance the competitiveness and facilitate the expansion of overseas markets for both companies.  

Additionally, the transaction will help improve the sustained profitability and asset quality of NEWJF, maximize the interests of shareholders and fully safeguard the interests of the company and minority shareholders.

Diversification and advancement: high-quality assets to promote industrial upgrading

Data show that both NEWJF and Greatview are engaged in the aseptic packaging industry, primarily used for food or beverages packaging. 

NEWJF's main product is a roll-type aseptic packaging, and the company has established a diversified product range including "Pillow Aseptic Package", "Brick Aseptic Package", "Octagon Aseptic Package", and "Metallized Aseptic Package". Greatview has more diverse products of "Brick Aseptic Package", "Octagon Aseptic Package" and "Metallized Aseptic Package" than NEWJF's.

Currently, NEWJF has not been involved in the packaging and filling solutions business, including filling machines accessories, and technical services, which Greatview engages in. At the same time, Greatview also has a presence in foreign markets, with factories, research centers, and operating institutions in multiple countries such as Switzerland, Germany and Italy.

As a result, NEWJF's voluntary comprehensive tender offer this time will help strengthen business synergy with Greatview, expand the product layout under NEWJF, enrich the product matrix, and further achieve comprehensive integration in advantageous resources, technology and business. Besides, it will further facilitate NEWJF's expansion into overseas markets and expand the influence of company’s aseptic packaging brands in the international market.

The transaction will also accelerate Greatview’s strategic development and power to optimize its funds allocation. It will also optimize funds allocation and raise both brands’ market share and competitiveness in the global aseptic packaging market.

Optimizing strategic layout: strong momentum for future growth
According to statistics, Greatview's net profit in 2023 was 244.2 million yuan, up 33.89 percent year-on-year; the return on equity was 8.85 percent, showing an increase of 1.61 percentage points year-on-year; and the dividend per share in 2023 was HK$0.1, with a dividend yield of 3.77 percent, expected to bring HK$37.71 million in dividends to the company. 

The overall business development of Greatview in 2023 showed a favorable trend, indicating a relatively successful strategic investment by the company.

The annual report shows that NEWJF's revenue increased by 8.05 percent to 1.737 billion yuan in 2023, with net profit increasing by 0.39 percent to 170 million yuan. Additionally, the first-quarter report for 2024 shows that the company achieved revenue of 437 million yuan during the period, a year-on-year increase of 1.04 percent, and achieved a net profit attributable to shareholders of 53 million yuan, up 25.60 percent year-on-year. 

According to industry research reports, NEWJF accounted for approximately 10.5 percent of the sales volume of China's aseptic packaging market and 13.4 percent of the sales volume market share of aseptic packaging suppliers in China's liquid milk market in 2023.

Given Greatview's good profitability, if NEWJF acquires the controlling interest in Greatview, it will further improve the sustained profitability and asset quality of the listed company, helping maximize the interests of shareholders, and safeguard the interests of the company and minority shareholders.

Moreover, NEWJF expressed confidence in its capability to keep advancing. The company will, according to the requirements of its development strategy, leverage its brand advantages and capital advantages, utilize the abundant financing channels in the capital market to support its development, seize opportunities for corporate acquisitions and mergers, and promote the accelerated integration of resources in the aseptic packaging industry, according to the company’s annual report. 

Furthermore, it plans to optimize production layout by reducing expenses, leveraging the advantages of the industrial chain, expanding the company's industrial layout, improving the overall profitability of the company, and creating greater value for its shareholders.

In terms of operations, the company adheres to a customer-centric approach, it commits to increasing market development efforts, deepen the domestic market and keep exploring international markets. 

At the same time, the company will accelerate the construction of the "5 billion packs of aseptic packaging materials manufacturing project" production line, expanding the production capacity, enhancing supply capabilities, and creating higher economic benefits.

NEWJF said that it looks forward to this transaction and hopes that through this transaction, it will be able to accelerate the development ofpackaging materials, filling machines, and even the entire aseptic packaging industry chain, supporting the healthy development of global dairy and non-carbonated soft beverage industries.