Bombed out flower grower and wholesaler Lynch Group is understood to be considering options for its once-exciting China business, in a bid to unlock value for investors and potentially a buyer for the whole group.
It is understood Lynch Group has held talks with potential buyers for the China business as part of the review, keen to test whether there’s an owner willing to pay up for the business like Lynch itself did at the time of its ASX-listing in 2021.
Sources said the talks including a round of negotiations with private equity firm Nexus, which focuses on Greater China buyouts. The talks were said to have been reasonably advanced, however it is not known whether they’re still current.
Lynch Group chief executive Hugh Toll with staff at one of the company’s flower farms in China’s Yunnan province.
Exiting China would be a big U-turn for Lynch Group and likely surprise its institutional investors.
Lynch Group has been invested in China since 2015, via a 20 per cent stake in VDB Asia, and used some of the proceeds from its IPO to buy the rest of the business for $90.5 million. It was part of former owner Next Capital’s big plan for the company.

This data comes from MediaIntel.Asia's Media Intelligence and Media Monitoring Platform.