Asian Citrus buys Beihai for $263 million

China’s largest orange grower, Asian Citrus Holdings, will buy Beihai Perfuming Garden Juice Company Beihai BPG at a valuation of HK$2.04 billion $263 million, giving a consortium of investors led by private equity firm Lunar Capital a healthy return on an investment made less than a year ago.

Asian Citrus signed a memorandum of understanding with the owners of Beihai BPG last month. The price now agreed between the parties comprises HK$780 million in cash to be paid to the holders of convertible bonds and HK$1.26 billion in the form of new Asian Citrus shares to be issued to the sellers.

Asian Citrus is listed in Hong Kong and on...