China’s Bright Food Group Co. is planning a Hong Kong initial public offering (IPO) that could raise more than $200 million for its distribution arm, Manassen Foods, which sells Babybel cheese, Carr’s crackers, and Hellman’s mayonnaise in Australia, and could be valued at $1 billion.

 

Bloomberg reports that the Shanghai-based food group, and owner of the Weetabix cereal brand, has reportedly hired an investment bank to prepare the listing that is scheduled to take place next year.

 

The possibility of an IPO comes on the heels of a flurry of global acquisitions by Bright Food including a controlling stake in Israeli diary producer, Tnuva Food Industries Ltd, and New Zealand’s Synlait Milk Ltd., and may be a sign that the group is maneuvering to recoup some of the funds it spent on these acquisitions.

 

Prior to the float, Bright Food is planning to integrate its controlling stake in Chinese food wholesaler, Shanghai Qinzhou Trading Co. into Manassen as a means of boosting the listed vehicle’s valuation.

 

Qinzhou Trading distributes Ferrero Rocher chocolate, Kjeldsens Danish butter cookies, and Wrigley’s chewing gum in China according to a 2012 announcement on Bright Foods government website.

 

Bright Food chairman, Lv Yongjie said in an interview in June 2014 that Bright Food, with the backing of the Shanghai government, is seeking out acquisitions of companies that would prove to be a good fit on the Chinese market, and which are well positioned for future IPOs.

 

Bright Food bought a 75% stake in Manassen in 2011 for A$400 million, and Pan Jianjun, spokesman for Bright Food, responded to enquiries by Bloomberg stating that preparations for a Manassen IPO are currently being arranged, but that the final details are not set.