Foodstuff enterprise Cofco Hong Kong and Hopu Investment Management have agreed to buy a 20% stake in China Mengniu Dairy Company. The HK$6.1 billion $782 million investment by the two firms will allow Mengniu to raise some new funding as well as provide liquidity to some existing shareholders who will reduce their holding in the dairy company.
The two investors will make the investment via a joint venture, which will be 70% owned by Cofco and 30% owned by Hopu. Half of the investment is made up of newly issued shares while the remainder will be purchased from current shareholders. Once the deal is completed, the investor consortium will become Mengniu's single largest...
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