Osim is holding steady despite FT report that China's Bright Food has walked away from talks to acquire US-based vitamin retailer GNC Holdings, underlining the difficulties of sealing deals with emerging market buyers. The news on Bright Food, which in Dec was said to be close to buying GNC In a transaction worth US$2.5-3b, came shortly after the Chinese dairy group ended discussions with the private equity owners of UK-based Biscuits.
To recap, Osim owns 82.8% of Global Active, the sole GNC franchisee for Spore, M’sia & Australia operating a total of 146 outlets. While this failed bid may dash hopes of some possible M&A between Osim & Bright Food given their complimentary distribution network in SE Asia & Greater China, the stock has been riding high over the past mths on its attractive expansion strategy & approval for TDR listing.
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