HONG KONG Jan 5 China Mengniu Dairy Co Ltd
said on Thursday it would pay HK$1.87 billion ($241
million) to raise its stake in China Modern Dairy Holdings Ltd
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.
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
($1 = 7.7548 Hong Kong dollars)
(Reporting by Donny Kwok; Editing by Himani Sarkar)