China Mengniu sinks to 1-1/2-year low as Danone cuts ties

China Mengniu Dairy

10/05/2022 05:36

** Shares of China Mengniu Dairy Co Ltd  2319.HK  drop as
much as 7.6% to HK$35.65, their lowest since October 2020, and
on course for a fifth consecutive session of decline
    ** Stock set for the biggest daily percentage decline since
November 2015, if losses hold
    ** France's Danone  DANO.PA  said it would end its
partnership with Chinese milk firm Mengniu by selling a 25%
stake it holds in milk powder maker Yashili  1230.HK  and a 20%
joint venture participation  urn:newsml:reuters.com:*:nL5N2WY5M5
    ** In return, Danone will acquire from Yashili 100% of the
Dumex Baby Food infant milk unit
    ** Mengniu also initiates a privatisation proposal to take
Yashili private at HK$1.20 per share, representing 30.4% premium
over the closing price of HK$0.92 each on May 6
    ** Stock of Yashili jumps as much as 21.7% to HK$1.12,
highest since July 2019
    ** The Hang Seng Commerce & Industry Index  .HSNC  drops
3.9% while the Hang Seng Composite Index tracking consumer
staples  .HSCICS  gains 0.1%
    ** The Hang Seng China Enterprises Index  .HSCE  drops 3.3%
and the benchmark Hang Seng Index  .HSI  falls 2.8%


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