Cofco Magnolia officinalis Fund 6 billion in Mengniu Dairy

In Niu to persuade Gaoning to the Cofco Coca-Cola beverage bottling plant settled in Inner Mongolia, from the neighbors, and the two members of the Chinese entrepreneur club led the food giant's marriage. According to foreign news, state-owned enterprises China oil and foodstuffs import and Export Co., Ltd. and private equity company Hopu Fund will jointly invest about 780 million U.S. dollars (about 6 billion yuan) stake in Mengniu 20%. Thus Cofco and Hopu will jointly become the largest shareholder in Mengniu Dairy.　　However, it was revealed that Cofco will not participate in the day-to-day management of the company.　　Yesterday morning, Mengniu Dairy (2319,HK) suspended in the Hong Kong stock exchange, Mengniu Dairy said the reason for the suspension was the company's announcement on the possibility of issuing new shares and trading shares of existing shareholders and other sensitive information, and released the specific situation later that day. People close to Mengniu said the biggest capital deal in the dairy sector this year, both for Mengniu and Cofco, was a great partnership. The injection of Mengniu is a reflection of the development of "whole industry chain food enterprise" in Cofco.　　Mengniu, by virtue of Cofco Group's industrial chain and worldwide network system, towards internationalization. "Mengniu money places too much" according to people familiar with the situation, Cofco and Hopu investment will jointly form a joint venture, through the acquisition of some Mengniu Dairy shareholders and the purchase of new shares, the Mengniu dairy industry after the dilution of about 20% shares.　　Cofco and Hopu will hold 70% and 30% joint ventures respectively. "Mengniu introduced this is not strategic capital, they need to spend too much space."　　Dingmian, a dairy expert, told reporters yesterday. After several years of development, Mengniu Group has become the largest liquid milk producer in China.　　Mengniu's share price has soared in recent years as China's stock market has strengthened, and Mengniu's share price in Hong Kong has risen 89% per cent since 2009. However, Mengniu 2008 Annual report shows that Mengniu capital pressure increases, the liquidity of less debt rate increased. The company's revenue grew by 11.9% in 2008 to 23.865 billion yuan.　　However, affected by the melamine incident, the net loss of 948.6 million yuan, and last year a net profit of 936 million yuan far. As at December 31, 08, the net cash inflow from the Mengniu business operation was $586.9 million, which was substantially reduced by about $2.0581 billion over the same period in 2007, while the net cash for the company was 1.3133 billion yuan, which was 1.9477 billion yuan from 2007. However, the Mong newspaper still commented on the change as "the financial situation is still at a reasonable level." In addition, Mengniu has not repaid bank loans for 1.7287 billion yuan, compared with the same period last year, the 263.2 million yuan significantly increased by about 1.5 billion.　　Of these, $1.2087 billion is to be repaid within one year and the other 520 million dollars will be repaid for more than one year. Lianfang, an analyst with Oriental Ai, said that since 1999, the style of Mengniu is to integrateThe resources that are advantageous to oneself are rapidly bigger. Last year, the melamine incident to Mengniu's big blow, Mengniu capital turnover difficulties. But Mengniu still has to strengthen Ruyuan construction, "a million cattle scale of the ranch investment will be a few billion, according to Mengniu's plan to invest billions of, Mengniu relies on its own strength pressure."　　"It is reported that Mengniu has cooperated, shares in the construction of 9 million heads above the scale of the Super Ranch, each year to invest billions of dollars in training of farmers and improve the cultivation of improved technology." Analysis of the industry, as the normal temperature milk products leading enterprises, Mengniu with the product update and increase, cold chain construction has become an increasingly urgent solution to the construction of one of the channels.　　At the same time, Mengniu in the past years of upstream pasture construction, pay milk farmers milk, advertising marketing and other aspects, have become a huge cost of industrial engineering.　　Gaoning? Reporters yesterday called Cofco Group, the person concerned about the shares of Mengniu declined to comment. Cofco insiders told reporters that Gaoning recently went to Inner Mongolia, on the Cofco group Coca-Cola production project in Hohhot City County Foundation of the Government and the senior management of the Inner Mongolia communication. Interestingly, the project's go-between is NIU. It is reported that Cofco Coca-Cola Beverages (Inner Mongolia) Co., Ltd. is located 100 meters east of the Mengniu Industrial Park, two companies only one street apart. According to the local media in Inner Mongolia, the foundation ceremony, in charge of the shuttle mission in the vehicle, at least 4 of Mengniu commuter to "support."　　At the foundation-laying ceremony, a head of Cofco Group also mentioned several major benefits to Mengniu's "neighbourhood".　　NIU and Gaoning are members of the Chinese entrepreneur Club, and last August, the club's exchange activities were arranged at Mengniu headquarters. Oriental analyst Ma Wenfeng said that the recent investment activities of COFCO, whether it is food, edible oil or fruit juice and other fields, and dairy industry in the few before the grain, dairy industry's profit level is certainly higher than the food processing industry. According to its introduction, if you can buy a stake in Mengniu, Cofco will add new business chain and platform.　　On the other hand, Cofco as a state-owned enterprise, its entry also increased the discourse of national capital, "Mengniu stock rights are more complex, and the proportion of foreign ownership is higher, if the introduction of foreign capital, Mengniu's capital strength is weaker."　　At the end of last year, Niu also sent a passionate million to Chinese entrepreneur club directors and students at the Cheung Kong Business School, calling for outside help to prevent possible foreign takeovers.　　According to the annual report of Mengniu 2008, the NIU and management of the bull, Silver Bull and Taurus hold a total of 24.53% shares in Mengniu, but according to the SEHK, their holdings increased to 25.94% on March 16. Mengniu to borrow power to internationalization as another investor, Hopu has the strong background of Temasek and other institutions, as China's most influential private equity institutions, Magnolia officinalis currently has a total capital of about 2.5 billion U.S. dollars.　　Magnolia Officinalis's shot, for Mengniu and Chinese dairy industry, is tantamount to a heavy artillery. Industry leader and StrongThe combination of capital forces, in the dairy industry, Mengniu and capital a beat can, should be the best combination. Industry analyst Liu Jinxian that "dairy industry as a state-supported basic industry, is unlikely to allow foreign capital to gain control." Yili and Guangming as state-owned enterprises, foreign capital entry is difficult. And Mengniu's open attitude and private nature, so that the powerful alliance possible. According to people familiar with the matter, COFCO will not participate in the day-to-day management of the company after committing to a stake.　　Dingmian that, according to Niu's character and the relationship between him and Cofco, not to let Niu promised state-owned funds control Mengniu. Although the industry generally suspected that Mengniu capital chain problems, only quietly and Cofco group, Hopu to talk about this big deal, but industry analysts still think, "Cofco may be in the replacement of government functions, 20% of the shares can not change the NIU team's voice status." I believe that there will be no major changes in the industry pattern and management pattern of Mengniu.　　"The biggest capital deal this year in the dairy sector is a great partnership, both for Mengniu and Cofco," said a person close to the company.　　Gaoning, chairman of Cofco Group, said in April in the "People's Daily" high-profile, seize raw materials acquisition, production and processing and marketing and other key links, the development of "whole industry chain food Enterprises," the new development model. COFCO Group in the improvement of food, wine, aquaculture and other industrial chains, market space and the huge profit space of the dairy industry into the field of vision.　　Analysts believe that Mengniu as the industry giant, the industry chain is relatively perfect reality, COFCO Group and Mengniu Cooperation is the best reason. Mengniu in the process of equity trading, to seek other dairy industry has not touched the benefits: the use of COFCO industry chain and the world's network system, for Mengniu to internationalization, share Cofco Group's super resources, to create a platform. "The involvement of a strong private equity fund also provides a more alternative path for Mengniu's next step." COFCO Group state-owned grain trading Company, founded in 1952, is China's largest food and oil import and Export Corporation. COFCO has established a large resource base to carry out food distribution operations in the country. The company also with the Coca-Cola Company (Cola Co.) Established a partnership for its domestic distribution of products.　　Last year Cofco bought a stake in SM Ithfield Foods INC 5%, headquartered in Virginia State.　　Hopu, a private-equity firm founded by the Chinese partner of Goldman Sachs Group, manages 2.5 billion of billions of dollars of assets, and Goldman Sachs and Temasek Holdings in Singapore support the fund. Newspaper reporter Wang Haiyan ganghwa intern Wumong