Malaysian billionaire emerges as backer of formula exporter AZ Global

afr.com:

Ming Tee Lee, the Malaysian billionaire behind the conglomerate which owns the InterContinental Hotels in Sydney and Hayman Island, has emerged as the key player behind the Chinese baby formula distributor in the midst of an attempt to role the board of Bubs Australia.

Mr Lee’s Allied Group, one of the largest exporters of Australian products into China, is a key backer of AZ Global, the infant formula group’s largest distributor, according to a pitch deck obtained by AFR Weekend.

The billionaire’s silent interest in AZ Global comes as the distributor is embroiled in a bitter dispute with Bubs Australia. The infant formula group is pursuing AZ Global for $5.65 million associated with unsold stock. Emails seen by AFR Weekend, however, show AZ Global was in April offered a reworked payment plan to work through its inventory by September. AZ Global now says Bubs owes it more than $20 million because it had earlier agreed to refund products that could not be sold.

Andy Zhang – the founder of AZ Global, the biggest daigou trader in Australia – is seeking a refund for unsold stock. Edwina Pickles

That disagreement is happening in the midst of a corporate bunfight between Bubs’ current management – led by its new chairman, former King & Wood Mallesons partner Katrina Rathie – and its founder and ex-chief executive Kristy Carr and former executive chairman Dennis Lin. Shareholders, who have so far had to wear $240 million in losses, will vote on which group will control the company at a meeting this month.

AZ Global, which has been central to Bubs’ strategy to export into China, is one group supporting Ms Carr and Mr Lin, and their attempts at installing former a2 Milk Company executive Peter Nathan as CEO. It is a major