China Mengniu Dairy giving $826 million for Modern DairyStaff Writer | January 6, 2017
China Mengniu Dairy has offered to buy out China Modern Dairy Holdings for $826 millio.
Acquisition 965.47 million shares
Under Hong Kong's corporate rules, the owner of more than a 30 percent stake in a company will have to make an offer to buy out the shares it does not already own.
China Mengniu said it will make an offer for the remaining China Modern Dairy shares at the same price of HK$1.94 each, a 7-percent premium to their Wednesday close.
It expects to spend another HK$6.4 billion ($826 million) on that transaction, boosting its stake further to 91 percent. ■