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Jatenergy Ltd

Jatenergy's shares surge 20% as its acquisition target seals deal with Chinese e-commerce group

The company is in the process of acquiring 51% of infant formula brand Golden Koala.

Picture of tin of milk formula
The 51% acquisition of the baby formula brand requires shareholder approval

Jatenergy Ltd (ASX:JAT) stands to benefit from the proposed establishment of a platform whereby Golden Koala Group can sell its milk products into the Chinese market.

Under such an arrangement, Golden Koala would establish a flagship store on leading Chinese cross-border sales platform, Kaola.com.

Part of internet giant NetEase, Kaola is one of China’s largest and fastest growing cross-border e-commerce platforms.

Jatenergy to acquire 51% of Golden Koala

Jatenergy is in the process of acquiring 51% of Golden Koala.

The market has recognised the benefits of having access to an e-commerce platform in China, with the company’s shares spiking 20%.

The acquisition will only proceed if the necessary resolutions are passed at the general meeting of Jatenergy shareholders to be held on March 27, 2018.

Jatenergy targets FMCG sector

The resolutions are required for Jatenergy to begin operations as a fast-moving consumer goods (FMCG) business.

The acquisition of Golden Koala and the participation in the sales platform are key components of the development of this business.

Quick facts: Jatenergy Ltd

Price: $0.06

Market: ASX
Market Cap: $43.92 m
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