The board is pleased to announce that JAT has agreed, subject to shareholder approval, to purchase a controlling interest in Green Forest International Pty Ltd (Green Forest), a significant Sydney based wholesaler, distributor and exporter to Hong Kong and mainland China.
“This acquisition provides an immediate boost to JAT’s turnover and profitability,” Executive Director Wilton Yao said. “More importantly our businesses are highly complementary. We have very strong relationships with the major sales platforms in mainland China, like TMall and JD, and directly with major retailers like Shanghai Dragon, and of course we are developing our own product ranges. Green Forest is very strong in Hong Kong and in Australian Daigou and Duty Free stores, and they bring a large portfolio of Australian and international brands to the group.
“This is the next step in our strategy to develop FMCG distribution and sales channels for our own brands as well as third party products,” Mr.Yao said.
Green Forest sells to more than 50 shops and pharmacies in Hong Kong and over 200 gift shops, duty free stores and Daigou warehouses in Australia. They are major suppliers to Chinese TaoBao and Wechat channels and other online platforms.
The agreement delivers control of Green Forest with 50% of shares on issue (and Board Chairmanship with the casting vote). JAT and Green Forest shareholders have also agreed to inject $4 million into Green Forest as working capital to fund business expansion, taking advantage of merger synergies.
The Directors of JAT and Green Forest are confident that, working together the expanded businesses will achieve greater stability of cashflows and income.