Shares of Oriental Rise Holdings Ltd (NASDAQ:ORIS) declined by 5% after the Chinese tea products company disclosed that it has signed a non-binding letter of intent (LOI) to acquire two fellow tea distributors operating within China.
Under the proposed deal, Oriental Rise aims to acquire full ownership of Fujian Daohe Tea Technology Co., Ltd. and Ningde Minji Tea Co., Ltd., both identified as key players in the Chinese tea distribution industry. As the LOI is non-binding, either company may walk away from the deal at any time.
The next step for Oriental Rise involves carrying out detailed due diligence on the two target companies while also working toward a definitive purchase agreement. The move fits into the company’s broader strategy to expand its presence in China’s consumer and wellness markets.
“The signing of this LOI is an exciting step toward strengthening our position as a leading integrated tea supplier in China, the largest tea consumer market in the world,” said Dezhi Liu, Chief Executive Officer of Oriental Rise. “Bringing Daohe and Minji into the Oriental Rise family would significantly expand our distribution capabilities, customer base, and supply-chain efficiency, resulting in added value to our business and shareholders.”
According to the announcement, Fujian Daohe is recognized for its high-end tea products and modern processing technologies, while Ningde Minji specializes in large-scale tea distribution, operating across China via both online and offline platforms.
The potential acquisitions are seen as part of Oriental Rise’s ongoing effort to enhance operational reach and tap into a growing domestic demand for premium tea offerings.
Oriental Rise Holdings stock price
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