China Mengniu jumps most in 10 weeks on mulling to take Yashili private

China Mengniu Dairy

17/03/2022 07:59

** Shares of China Mengniu Dairy Co Ltd  2319.HK  jump 5.7%
to HK$45.4, their biggest daily percentage rise since Jan. 7 if
gains hold
    ** Mengniu says it is in discussions regarding its holdings
in Yashili International  1230.HK  and certain other business
interests which may result in a number of potential transactions
that may include a potential pre-conditional privatization offer
for Yashili (https://bit.ly/3u77HIG)
    ** Mengniu, which holds 51.04% of Yashili, says the deal
will involve a cancellation of HK$1.20 for each Yashili share 
    ** Stock of infant milk formula products maker Yashili falls
as much as 13.8%, worst day since July 2011, if losses hold
    ** Citi maintains "buy" rating on Mengniu, saying the firm
has been making efforts to restructure its milk powder business
for its new 5-year strategy
    ** Daiwa reaffirms "buy" rating on Mengniu but sees downside
risk from a slowdown in premium product sales
    ** Hang Seng Commerce & Industry Index  .HSNC  surges 7.5%
and composite Industry Index tracking consumer staples  .HSCICS 
rises 4.2%
    ** Hang Seng China Enterprises Index  .HSCE  jumps 6.8%, and
the benchmark Hang Seng Index  .HSI  climbs 6.4%

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))