China's Bright Food on hunt for more Australian acquisitions

WANG Zongnan, the chairman of Chinese state-owned food group Bright Food, said today there is potential for future acquisitions in Australia and Europe as the group looks to grow its wine, dairy and sugar businesses.

Wang, who is in Sydney to celebrate Bright Food's acquisition of a 75 per cent equity stake in Manassen Foods Australia from Champ Private Equity, told Dow Jones Newswires in an interview the group's first priority is to see Manassen Foods become operational and gain access to the Chinese market.

But then, he said through an interpreter, "for future M&A, (Australia) is going to be considered".

Mr Wang said the group would make several more acquisitions in order to reach a previously stated goal of boosting overseas sales to as much as 30 per cent of total sales within the next five years.

As for its fundraising efforts, he said the group is considering an initial public offering of its sugar unit, but not before the end of this year, and is working on a bond deal he expects will raise $US470 million by the time the deal is completed.

Bright Food operates more than 3300 retail stores in China.