China’s New Hope May Raise $100 Million for Cold Chain Unit, Sources Say

(Bloomberg) -- Chinese agriculture conglomerate New Hope Group Co. is considering raising about $100 million for its cold-chain logistics business, according to people familiar with the matter.

Chengdu-based Fresh Life Cold Chain Logistics Co. is sounding out potential industry and private equity investors, they said. The company is seeking a valuation of at least $1 billion, said one of the people, who asked not to be identified discussing a private matter.

Deliberations on the fundraising are preliminary and the size and timeline could change, the people said. Representatives for New Hope and Fresh Life didn’t immediately respond to requests for comment. 

Founded in 2016, Fresh Life has over 40 subsidiary companies and a fleet serving more than 120,000 stores across China, its website shows. It completed a 600 million yuan ($94 million) series A fundraising round, Fresh Life said in January. 

In an effort to cut food wastage during transportation, China has vowed to build about 100 bases by 2025 as part of a five-year plan to expand its cold-chain supply network. A boom in online shopping has also spurred the need for facilities that help deliver fresh fruits, vegetables and meats to far-flung corners of the country. 

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With assistance from Bloomberg