Rice wine producer Jinfeng is to raise CNY700m (US$112.3m) to part-fund a 70% stake in Bordeaux wine brokers Diva.

The undisclosed leftover cash will be invested in expanding Diva's presence in China as the French company continues to target exports in the country, Diva's CEO Jean-Pierre Rousseau told just-drinks today (19 December). Half of Diva's wine exports are to China and it hopes to increase this over the new few years, Rousseau said.

“When we were looking for capital we had the choice of different countries, but we chose China because first it would bring us the cash, but also the opportunity for development,” he added.

Jinfeng will raise the money through an issue of 90.32m new shares to no more than ten investors, including its largest shareholder Shanghai Tangjiu. Tangjiu is an affiliate of Chinese group Bright Food, which bought the 70% stake in Diva in June.

Rousseau said Bright Food, which bought UK breakfast cereal maker Weetabix in May, is selling its stake in Jinfeng to help Diva raise vital capital.

“They (Bright Food) decided that the best way to develop our business in China and to develop the wine culture in China was to have more financial means,” he said.