China Mengniu pays $241 mln to boost stake in China Modern Dairy

China Modern Dairy Holdings

05/01/2017 24:48

HONG KONG, Jan 5 (Reuters) - China Mengniu Dairy Co Ltd 
 2319.HK  said on Thursday it would pay HK$1.87 billion ($241 
million) to raise its stake in China Modern Dairy Holdings Ltd 
 1117.HK  to secure a stable supply of raw milk.  
    China Mengniu, which currently owns 25.4 percent of Modern 
Dairy, said it would buy 965.47 million shares in China Modern 
Dairy from a joint venture of KKR China Growth Fund L.P.  KKR.N  
and CDH Fund IV, L.P. at HK$1.94 per share. 
    The purchase would boost China Mengniu's stake in the 
company to 39.9 percent. The joint venture would cease to hold 
any shares in China Modern Dairy following the deal.  
    China Mengniu will be required to make a general offer for 
all outstanding shares it does not already own in China Modern 
Dairy, the two companies said in a joint statement. 
    China Mengniu said it would fund the purchase through 
internal resources and external debt facilities, while it aimed 
to maintain the listing status of China Modern Dairy after the 
deal.  
 ($1 = 7.7548 Hong Kong dollars) 
 
 (Reporting by Donny Kwok; Editing by Himani Sarkar) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: MENGNIU DAIRY CHINA MODERN DAIRY/