Huiyuan to sell Shanghai branch to Taiwan food group

Hong Kong-listed China Huiyuan Juice Group Ltd confirmed Wednesday that negotiations to sell its Shanghai branch are in progress but no deal has been reached.

In a filing to the Hong Kong Exchanges and Clearing on Wednesday, Huiyuan Juice said the company noticed recent media reports about its beverage company in Shanghai, and admitted a deal was being negotiated.

"Once a deal is signed, we will announce it," the company said.

Reports on Tuesday said that Taiwan-based food conglomerate Uni-President Enterprises Corp will spend 300 million yuan ($49 million) to purchase Shanghai Huiyuan, a wholly-owned unit of Huiyuan Juice that produces vegetable and fruit juice.

Uni-President plans to invest $204 million in expanding its presence on the Chinese mainland, and it will have 40 plants by the end of 2014, Taiwan media reported, citing sources from Uni-President.