DLA Piper today announces that it advised Fosun International on its RMB210,500,000 investment in, and strategic partnership with food and beverage chain Secret Recipe, to become the second largest shareholder of Malaysia’s well-known restaurant chain.
Established in 1997, Secret Recipe is Southeast Asia’s largest casual dining chain group, with over 300 restaurants across Asia, including: Malaysia, China, Singapore, Indonesia, Thailand, Philippines, Brunei, Myanmar, India and Cambodia. Secret Recipe also holds a strategic partnership with Darden Restaurants Inc., a NYSE listed leading restaurant chain in North America with famous brands such as Red Lobster, Olive Garden and LongHorn Steakhouse.
This is the first investment by Fosun into an overseas restaurant chain and is aligned with their strategy of investments in overseas assets in sectors that would significantly benefit from China’s growth momentum, with a view to participating in the rapid development of China’s economy. Fosun’s investment in Secret Recipe is its first investment in Malaysia and will allow the Fosun Group to invest into the ASEAN markets. The investment also reflects the comprehensive strategic partnership entered into between China and Malaysia in October 2013 to encourage increased bilateral trade between the two nations. The partnership will also enable Secret Recipe to further its ambitious expansion plans of growing the brand internationally, in particular in China where outlets are expected to double by 2015, from more than 50 outlets currently.
Fosun Group’s Chairman, Mr. Guo Guangchang attended the signing ceremony for the deal and indicated that the Fosun Group is very optimistic about the future prospects of the development of China’s casual dining industry.
Heng Loong Cheong, partner at DLA Piper said: “This is another exciting acquisition for our long-term client Fosun International, and creates exciting upside for both our client and Secret Recipe. We are delighted to be part of such an important deal for the Fosun Group as they continue to expand their investments internationally and, for the first time, into Malaysia. This has been a complex transaction for the team at DLA Piper, and demonstrates our unique global footprint and ability to execute complex cross-border deals throughout Asia”.
The DLA Piper team was led by partner Heng Loong Cheong (Corporate, Hong Kong) and supported by a core team of Angela Cheung, Farrah Saleem, Janice Ma and Christopher Elliott (all Corporate, Hong Kong).
The deal was announced by Fosun Group and Secret Recipe on 15 February 2014.
