Another good write up, this time by SMH in it's live markets blog
http://www.smh.com.au/business/markets-live/markets-live-asx-calm-before-storm-20160724-gqcuj3.html
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Beston shares have risen 40 per cent since early April and are now sitting around 49¢. They climbed 3 per cent in early trading on Monday. The company
listed 11 months ago at 35¢.
Four executives from one of Nongshim's food manufacturing subsidiaries, Taekyung Food & Processing, including its
chief executive Bae Hyuk-jin closely examined Beston's premium food operations in person over several days last week in South Australia, before flying out on July 21.
They inspected
lobster operations in South Australia's south-east along with dairy farms, and milk processing and cheese-making plants near Murray Bridge, about 70km from Adelaide. The
clean and green appeal of Australian brands has been behind the phenomenal growth rates in China and broader Asia of
vitamin brands Blackmores and Swisse in the health sector.
Dr Sexton said Beston had thus far been
focusing on China in its expansion plans and didn't sell any of its products into South Korea, an important Asian market with a population of 52 million.
"
This will be the start," he said of an expected distribution deal into South Korea in partnership with Nongshim Group.
Beston, which has a market capitalisation of $180 million, briefly went into a trading halt on the ASX on Friday before it outlined that discussions with the subsidiary of Nongshim were about a strategic alliance to supply products into South Korea.
Dr Sexton said on Monday the proposal
did not involve any equity stake being taken up by Nongshim and the finer details were likely to take several weeks to cement.
(20min delay)
