China Mengniu Dairy Co Ltd said it has agreed to acquire an additional 8.97 percent stake in its main operating subsidiary, Inner Mongolia Mengniu Dairy Co Ltd, for of 2.84 billion Hong Kong dollars.
The deal will increase the company's shareholdings in the unit to 93.29 pct from 84.32 pct, which will help to speed up its strategic development and improve the competitiveness in the dairy industry, the company said.
China Mengniu will settle the purchase price by issuing 135 million new shares.
The shares represent approximately 8.67 percent of the enlarged issued share capital of China Mengniu.
China Mengniu Dairy Co Ltd announced yesterday that its net profit rose 28.7 percent year-on-year to 936 million yuan from 727 million on rising demand for dairy products in China, and declared a final dividend of 0.1315 yuan per share.