Thomson Geer advised on the deal
eCargo Holdings Limited (ASX:ECG) (ECG) executed its acquisition of 85% of Metcash Export Services Pty Ltd which includes its subsidiary Metcash Asia Limited, a wholly-owned foreign enterprise in China – from Metcash Trading Limited, a wholly-owned subsidiary of Metcash Limited (ASX:MTS) (Metcash).
The consideration paid for the acquisition was A$2.5 million plus 85% of the net asset value of the business of A$5.8 million and deferred compensation of up to A$3.5 million funded by a combination of ECG’s existing cash reserves and available facility.
This successful acquisition of 85% of Metcash Asia Limited allows ECG to create a one-stop offering for businesses intent on capturing the attention of China’s growing consumer market – both online and via traditional bricks and mortar stores.
ECG and Metcash will now cooperate on supply and export opportunities, and the China Head of Metcash will be appointed as CEO of ECG.
ECG is an eCommerce, technology and specialist execution group of companies, operating in both China and Australia. It acts as a one-stop enabling partner for designer fashion, branded apparel and retail companies seeking to sell their products online in China by providing integrated online and offline technology and supply chain solutions.
Metcash is Australia’s leading wholesaler and distributor. It supplies and supports more than 10,000 independent retailers across the food, liquor and hardware sectors. Some of its retail customers include IGA, Mitre 10 and Cellarbrations.
Thomson Geer advised eCargo Holdings Limited on the deal with a team including Matt Reynolds (Picture) and Dan Stumm.
Involved fees earner: Matthew Reynolds – Thomson Geer ;
Law Firms: Thomson Geer ;
Clients: eCargo Holdings Ltd;