Infant formula and soy milk products company Yashili leaped to a record close after investors decided to buy its shares, resuming trade that was halted in August. Yashili International Holdings Ltd. jumped 23% to HKD4.45 per share, batting for the highest closing price since its initial public offering since November 2010. It closed at HKD4.09 per share this morning.
China Mengniu Dairy Co. sold HKD1.65 billion (USD212 million) in Yashili shares to meet the minimum amount of stock in circulation, a Bloomberg report said. Mengniu Dairy is Yashili's parent company.
Yashili shares were sold at HKD3.50 per share, bringing Mengniu's holding to around 77%. The largest dairy products and ice cream manufacturer and distributor in China earlier had agreed to pay HKD12.5 billion for 100% of Yashili back in June.
Bloomberg, citing Mengniu's statement to the Hong Kong stock exchange, said the Chinese dairy giant was aiming to build a larger presence in the infant milk market.
Singapore's state-run fund Temasek and Hopu private equity fund affiliate Vitel Group Ltd. would be acquiring Yashili's shares from Mengniu. Temasek would buy 220 million shares, whereas Vitel would be buying 177.4 million.
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