On November 14th Yuan Sheng Tai Dairy issued an initial public offering (IPO) of up to $500 million in Hong Kong with dairy giant China Mengniu Dairy Co. as one of its cornerstone investors – agreeing to buy $60 million worth of shares. Mengniu has made this upstream investment just days after Yili Industrial Group made an upstream investment by entering into a strategic partnership with Sterilgarda Alimenti SpA of Italy. The purchase by Mengniu supports the company’s plan of investing in premium milk sources. Yuan Sheng Tai Dairy plans to use the proceeds from the offering to increase their number of cows to 100,000 and for operational improvements. Credit Suisse and Macquarie have both been hired as bookrunners of the IPO.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service