China's Bright Dairy to Raise $1.45 Billion to Fund Tnuva Acquisition

China’s Bright Dairy & Food Co. Ltd, is planning to raise 9 billion yuan (US$1.45 billion) from the sale of 559 million China “A” shares in a private placement to fund the acquisition of Israeli food company, Tnuva from Bright Food Group Co. Ltd.

Bright Dairy plans to sell its shares at 16.10 yuan per share, a discount to the stock’s latest trading price of 19.84 yuan, in order to fully acquire Bright Food Group’s total stake in Bright Food Singapore Investment Pte Ltd, the vehicle which controls Tnuva.

Bright Food Group began the process of acquiring Tnuva, Israel’s largest food company, from private equity firm, Apax and Partners in May of last year. The deal, which saw Bright Food gain 76.7% of Tnuva, was completed earlier this year. Last year’s Bright Food Group acquisition valued the company at approximately $2.5 billion – 250% above the company value of $1 billion when Apax acquired Tnuva in 2008.

China’s Bright Dairy to Raise $1.45 Billion to Fund Tnuva Acquisition

China’s Bright Dairy to Raise $1.45 Billion to Fund Tnuva Acquisition