Legend Holdings buys famous liquor company

Legend Holdings Ltd, the parent of personal-computer giant Lenovo Group Ltd, spent 400 million yuan ($63.32 million) on Saturday to buy Shandong Kongfujia Group, a well-known Chinese liquor company.

Kongfujia's management team will not change. Kongfujia Chairman Qiu Zhenxin declined to tell how many stakes they sold.

Legend Holdings has already created a development plan and set of goals for Kongfujia, in which the former will invest in improving the latter's production ability, widening sales channels, optimizing the product structure and establishing brand reputation.

The purchase of Kongfujia Group is Legend Holdings' third acquisition in the liquor sector since the company announced last year its plans to diversify into agricultural production.

Legend Holdings has already bought a 39 percent stake in Hunan Wuling Wine Co, a subsidiary of Luzhou Laojiao Co, a Sichuan-based liquor enterprise in July 2011, and took full control of a liquor company in Chengde, Hebei province, in October.

Legend Holdings' acquisition of liquor companies is expected to encourage industry giants and foreign capital to integrate their own liquor enterprises, experts said.

China Daily-Agencies