China: CITIC buys 25 percent stake in Ausnutria Dairy Corp. in US$250 million deal

636588597382231596puzzle piece.jpg

09 Apr 2018 --- CITIC Agri Fund Management Co Ltd is to buy a 25.18 percent stake in China’s Ausnutria Dairy Corporation Ltd for HK$1.96 billion (US$250 million), becoming the company’s largest shareholder. CITIC Agri Fund will buy 249 million new shares from dairy products supplier Ausnutria Dairy for HK$1.29 billion (US$1.64 million).

CITIC Agricultural Industry Fund Management Co. Ltd. offers investment services; the company invests in the real estate industry, individual private property, stock industry, and other related industries.


A statement from Ausnutria Dairy Corporation reads: The Subscription Shares represents 19.82 percent of the total number of issued Shares as at the date of this announcement, and 16.54 percent of the total number of issued Shares as enlarged by the issue and allotment of the Subscription Shares.”


“The gross proceeds of the Subscription will be HK$1,289,820,000. The net proceeds of the Subscription, after deduction of the related expenses, will be HK$1,288,820,000, representing a net price of HK$5.176 per Subscription Share.”


“The company intends to apply the majority of the net proceeds for the repayment of bank loans and future investments.”


Following the announcement, shares of Ausnutria increased by more than 6 percent to HK$6.93, an all-time high since 2009, but shares have since gone to HK$6.64.

RELATED ARTICLES
Homepicture

Milka chocolate joins Mondelēz sustainable cocoa sourcing program

25 Apr 2018 Mondelēz International’s iconic chocolate ...

Homepicture

Foodex 2018: Sophisticated adult beverages trend, as reduced sugar options sought

25 Apr 2018 Foodex 2018, which took place at the NEC in ...

Homepicture

Chocolate snacking: Almonds thrive amid premium, plant-based and texture trends

25 Apr 2018 Indulgence has long been known as a key driver ...

Homepicture

Citromax makes major investment in South American facilities for lemon imports

24 Apr 2018 Vivian Glueck, President of the Citromax Group ...