Chinese Government backed Bright Food is understood to be the party which has been in negotiations with Silver Fern to take a stake in the NZ meat company.
Bright is a wholly Government-owned State Owned Enterprise.
But the negotiating vehicle is understood to one of Bright's four listed subsidiaries. One of those subsidiaries - Bright Dairy & Food - took a majority stake in Canterbury milk processor Synlait Milk for $82 million in 2010.
Late last week speculation suggested the proposed deal would be announced today by Silver Fern Farms.
But the company has refused to make meaningful comment simply saying the capital raising is ongoing.
The proposed deal will not be plain sailing.
Silver Fern Farms briefed Goldman Sachs to identify potential capital transactions to accelerate debt reduction and invest in value-added and plant improvement.
Its banking syndicate: HSBC, Westpac, Rabobank and Commonwealth Bank of Australia is understood to support the introduction of a major capital partner.
The meat processor suspended trading of its shares on the Unlisted exchange last month.