Bright dairy 382 million holding New Zealand dairy companies

Experts believe that the bright dairy industry must now look for higher-margin products for performance support. In the light Food group's acquisition of the first major sugar company CSR's sugar assets failed only more than 10 days after its Bright Dairy Co., Ltd. (600597.　　SH, hereinafter said: Bright milk industry has taken the Chinese dairy enterprises overseas mergers and acquisitions of the first step. Bright dairy last night announced that the company intends to invest 82 million New Zealand dollars (about 382 million yuan), the New Zealand milk powder production and processing Enterprises Synlait Milk ltd.51% Equity. Bright Dairy said that New Zealand dairy products have a good international reputation and consumer awareness, the company entered the high-end infant milk powder market conditions.　　Bright Dairy President Guo Benheng expects the deal to be completed in the fourth quarter of this year.　　Bright Dairy shares in Friday closed at 7.48 yuan, Rose 3.46%.　　Bright milk, a large package of high quality milk powder manufacturers, will subscribe to 3.15 New Zealand dollars per share of the new 26.0217 million common shares of Synlait Milk Ltd., with a shareholding rate of 51%, expected IRR (internal rate of return) of 18%. According to the introduction, Synlait Milk Ltd. was established in 2005 in Canterbury, New Zealand, mainly engaged in milk powder production and processing business, the current main products for the large package of high-quality milk powder, is a New Zealand five independent milk processors, is a synlait 2¥q wholly-owned subsidiary.　　The Synlait 2¥q has a 22.5% stake in the Mitsui company of Japan. Synlait Milk　　Ltd., the milk supplier and shareholder of New Zealand dairy giant Fonterra (Fonterra, founded in 2001), began to stop working with Fonterra in 2007, and has grown into one of the world's leading suppliers of high value-added milk powder since it was officially put into production in 2008.　　According to the announcement, after the completion of the acquisition, Synlait Milk Ltd., the board will be set up 7 seats, of which the bright 4 seats, the original shareholder accounted for 3 seats (including the Chairman).　　According to relevant information, Synlait Milk LTD is now a member of the board of directors including former vice president Fonterra, former New Zealand finance minister and former general manager of New Zealand dairy group. Still need new relevant departments to examine and approve the announcement display, as of April 30, 2010 Management report, Synlait Milk　　Ltd. total assets of 185 million New Zealand dollar, net assets of 3.07 million New Zealand dollar, 2010 financial year before 9 months of sales revenue 165 million New Zealand dollar, loss 5.11 million New Zealand dollar. Bright Dairy said that the subscription funds for the return of Synlait Milk Ltd. Bank loans and the construction of the No. 2nd Factory, the new 2nd factory is dedicated to the production of high-end formula, is expected to be formally put into production next year. In addition, the bright dairy industry recognized Synlait MilkLtd. plans to list within 3-5 years after the deal is completed, and has the right to subscribe to a new stock when the company is listed for sale to maintain a 51% per cent stake. "We have completed due diligence and all relevant legal documents to negotiate and sign, but this project also needs to obtain the New Zealand Foreign Investment Office (OIO), and the relevant government departments in China for approval." "We are confident that we will be able to complete all the delivery procedures in the fourth quarter of this year," Guo Benheng said. "It is understood that bright dairy hired a rich experience in the dairy industry mergers and acquisitions in the Netherlands cooperation Bank (as a financial advisor), PricewaterhouseCoopers (as accountants), the British European law firm (as a legal adviser) and other well-known companies to form a project team, from the beginning of May this year to contact, signed July 16　　It is proposed to hold a general meeting of shareholders for consideration of the bill on August 5. "Competition for high-end milk powder market," said the bright dairy industry, the investment is based on strategic considerations and will be long-term holding the shares of the target company, "acquisition helps to accelerate the company's main business development, to ensure the realization of the bright strategic objectives."　　Guo Benheng explains the investment.　　As early as 2007, Guo Benheng in charge of the bright dairy industry, for the Bright dairy industry formally established a "recovery-growth-Take-off" trilogy strategy, strategic positioning from "fresh focus" into "focus on the dairy industry, do strong fresh, break through room temperature, attack milk powder." In raw milk, packaging, accessories, logistics and other related costs are high, the sales cost of a sharp rise in the double squeeze, the relatively lucrative middle and high-end infant milk powder market to become the dairy giants battleground.　　Guo Jin securities food and beverage analyst Chen, the current high-end milk powder net profit margin of up to 13%, and liquid milk net profit margin of only 2%. Oriental Securities, food and beverage analyst Shkiangang said, in light of the current situation of the milk industry, to achieve a breakthrough in sales scale is more difficult, it is necessary to find more profitable products for performance support.　　However, after the melamine incident, the milk powder industry into a long period of downturn, the high-end milk powder market by the United States and more than the U.S. and other foreign brands, such as the acquisition of foreign milk powder enterprises to enter the high-end market is a way. The steady supply of New Zealand's high-quality milk source is also one of the reasons for the bright dairy industry's fast-drop overseas. Bright Dairy believes that New Zealand dairy products good international reputation and consumer awareness, not only for the light into the high-end infant milk powder market to provide a good market entry point and production base, but also for the company to seek new profit growth point to provide an ideal industrial platform. Guo Benheng said, "Bright ' milk powder ' at present can only be counted test water, the real force is still in the Ming and the next, the current milk powder as a pillar industry to carry out strategic focus cultivation." ”