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BIZCHINA> Top Biz News
Cofco to buy Beijing instant noodle maker for 250m yuan
By Tu Lei (chinadaily.com.cn)
Updated: 2009-01-20 14:41

Cofco Ltd, China's largest agricultural trading and processing company, said it has offered to take over Wugudaochang, a Beijing-based instant noodle maker, for 250 million yuan ($36.55 million).

Wugudaochang, which filed for bankruptcy restructuring in November last year, has debts of 600 million yuan against 40 million in assets.

Cofco has also undertaken to hire the workers of Wugudaochang on a preferential basis.

If the transaction goes through, six factories in Shandong and Jiangxi provinces are expected to be integrated by the first half of this year.

In a statement submitted to the court, Wugudaochang, well-known in the market for its line of "non-fried" noodles, said that its financial troubles had stemmed mainly from high raw material and advertising costs.


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