Mengniu Announces General Offer for Yashili20 June 2013
CHINA – Mengniu Dairy Company Limited has jointly announced a general offer to fully acquire outstanding shares in Yashilli International through external financing.
Zhang International and CA Dairy Holdings (wholly owned by Carlyle Asia Partners), who together control more than 75 per cent of Yashili shares have accepted the offer.
By combining forces the two companies will create a leading platform for high quality milk powder, said Zhang Lidian, Yashili Chairman and Director of Zhang International who outlined two reasons for agreeing to join with Mangniu.
“First, Mengniu has a leading position in the domestic dairy industry. Second, we appreciate the strategic platform provided by COFCO Group, which is a large-scale state-owned enterprise,” he stated. “COFCO has an open management style, which encourages companies it acquired to maintain its management autonomy to grow bigger and stronger. We really anticipate and are confident about the cooperation.”
The announcement is likely to have huge impacts on the infant formula market, said Sun Yiping CEO at Mengniu.
“This transaction will have an enormous strategic significance to the shareholders of both companies," said Mr Yiping. “With the huge room for growth in China’s pediatric milk formula market, the partnership with Yashili, one of the most successful milk powder brands in China, will greatly strengthen both companies' business platform to offer consumers with more choices in dairy products that are safe, healthy and of highest quality,” said Mr Yiping.
Important relationships will be developed between the two companies, thereby benefiting from the expansive milk formula industry, he added.
TheMeatSite News Desk