Dongfang Modern receives $50 million loan

Company News

by Kathy Skantzos

Chinese agriculture company Dongfang Modern (ASX:DFM) has received a term loan of HK$300 million, equivalent to AUD$50 million, from investment company China Huarong Macau.

The loan provides the company with the flexibility to fund possible acquisitions, as well as provide working capital.

The investor, China Huarong Macau, is a state owned Hong Kong Stock Exchange listed non-banking financial institution.

The company commented that Dongfang’s strategy is to add shareholder value by broadening its revenue base outside China into high margin business markets in Australia that complement its agricultural business.

Executive Chairman Hongwei Cai said the facility provides Dongfang with the opportunity to acquire businesses with strong growth potential, leveraging its existing distribution networks and knowledge of the Chinese market.

Shares in Dongfang Modern (ASX:DFM) closed 4.24 per cent higher yesterday to $0.86.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.