China Mengniu Dairy Co Ltd said on Wednesday it planned to buy 26.92% of the country’s largest raw milk producer, KKR-backed China Modern Dairy Holdings Ltd, for HK$3.18 billion ($409.78 million) to secure a long-term premium milk supply. Mengniu said it would buy an aggregate 1.296 billion shares of Modern Dairy from KKR & Co L.P. backed Advanced Dairy SPA and CDH Investment Advisory Private Limited-backed Crystal Dairy SPA at HK$2.45 [US$0.32] per share…Full-text article: China Daily May 2013

Key point

  • Mengniu Dairy owns over 1% of Modern Dairy, but its stake will rise to about 28% once the deal is concluded

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