Bright stock trading response to takeover announcement New Zealand dairy companies

Light's takeover of Synlait Milk Ltd seems to have benefited both parties. The shares of Guangming Dairy Co., Ltd., which rose after yesterday's opening, closed at a 10.03% per cent rise, following the announcement of foreign investment announcements.　　The New Zealand dairy Company, Synlait Milk Ltd., said yesterday that the deal would allow the company to open up the Chinese market to high-end, high-quality infant formula food and dairy suppliers.　　Bright Dairy announced on the evening of July 18, agreed to spend 82 million New Zealand dollars (about 382 million yuan) to subscribe to 3.15 NZ dollars per share of the shares of 26.02 million shares Synlait Milk Ltd., accounting for the latter's total share capital of 51%.　　The deal led to the end of Synlait Milk LTD's protracted fund-raising efforts to build a second production plant. Synlait Milk Ltd. Currently produces about 50,000 tons of whole milk powder and skim milk powder and no emulsion fat every year, its milk processing amount is about 2.2% of New Zealand total milk production, the main products are large package of high-quality milk powder.　　According to reports, Synlait Milk Ltd. Chief executive John Penno said yesterday that the company would use the funds to increase production by one fold and dabble in the formula dairy market, especially for infants and children.　　In addition, Synlait Milk Ltd. also said that through the deal, Synlait Milk Ltd. could quickly enter the East China market with huge growth potential. Guotai analyst Hu Chunxia said yesterday that for the Synlait Milk Ltd., which currently has large liabilities, access to the Chinese market for high-end milk powder, in the long run, will definitely have a positive effect on performance.　　According to an industry analysis report released by Chengang Securities analyst, the 2009 infant formula milk Powder Total market value of 36 billion yuan, annual consumption of more than 200,000 tons, accounting for milk powder total consumption market 80%, the next three years is expected to continue to maintain the compound growth rate of 20%. According to data, Synlait Milk Ltd. last year abandoned plans to raise 150 million New Zealand dollars in New Zealand through initial public offerings. The company said at the time that the overall market support was not enough to make the IPO plan difficult to implement. Synlait Milk Ltd. will launch another IPO plan in New Zealand or Hong Kong in the next 3-5 years, according to the Bright dairy industry.