Mengniu officially announces acquisition of milk powder industry

Original title: Mengniu officially announced the acquisition of the Chinese milk powder industry's largest mergers and acquisitions international online news (reporter Yiu): June 18, China Mengniu Dairy Co., Ltd. (02319. HK) ("Mengniu Dairy") and Ashley International Holdings Limited (01230. HK) ("Ashley Lee") jointly announced that Mengniu Dairy made an offer to all shareholders, and obtained the holding shareholder Zhang's International Investment Limited ("Zhang's International") and the second largest shareholder, Carlyle Asia Fund wholly-owned subsidiary CA Dairy Holdings ("Ca Dairy") Accept an irrevocable promise of an offer that promises to sell a total of about 75.3% per cent. According to the announcement of the day, Mengniu Dairy will issue an offer to all the shareholders The shareholders of the company will have two options for each share: 3.50 HKD of cash per share, or 2.82 HKD cash per share plus 0.68 shares of a unlisted holding company set up by Mengniu Dairy to hold the Italian stock. It is reported that Mengniu dairy industry with Zhang's international and CA Dairy signed irrevocable commitment, the above two companies pledged to accept the offer to sell their holdings of 51.3% and 24% of the shares. Assuming that only Zhang's international accepts the second option and all other shareholders accept the first option, the total amount of cash traded amounted to HK $11.3 billion. After the completion of the transaction, the former shareholder Zhang International will hold the shares of 10% of the rights of Li. This is so far, China's largest dairy industry mergers and acquisitions, but also Mengniu dairy in the field of milk powder is an important signal. Two major dairy giants together, will be through resource integration and complementarity, using both sides in products, brands, channels and other advantages, accelerate the high-end milk powder industry overall upgrade speed. At the signing ceremony of the Ministry of Industry, the party members, chief engineer Zhu said that the cooperation between the two sides has taken a step to enhance the quality of the dairy industry and promote the transformation and upgrading of the industry. Sun Yiping, president of Mengniu Dairy, said: "We are delighted to have a controlling stake in Ashley, which is of great significance to the shareholders of two companies." Domestic milk powder market space is huge, as one of the most successful milk powder brands in China, the addition of the company will effectively strengthen the business platform of the two sides, with Mengniu milk powder business complementary, and for the development of two companies bring significant synergy, and at the same time for more consumers to provide more safe, healthy, and high-quality dairy products. "For two companies, this means not only cooperation and complementarity, but also a shared commitment to consumers," Sun Yiping said. The team in the infant milk powder industry has a very rich and successful management experience, after the merger we will retain the independent operation of the business platform, so that it remains as a professional company engaged in milk powder, the future will also be through the introduction of Mengniu milk industry expertise and international industry partners, Further development of the company to become a more international milk powder enterprises. For the offer of Mengniu Dairy, the chairman of the Board, Zhang's international director Zhangli also said that he has promised to accept the Mengniu offer, and is also looking forward to working with Mengniu to work together to develop the future milk powder market. Zhangli said: "Zhang's international Choice and Mengniu cooperation, on the one hand, is based on Mengniu in the domestic dairy industry leading position, the second is bullish Cofco as a large central enterprise strategic platform, has a very open management model, can encourage mergers and acquisitions of enterprises to do strong, play management autonomy." We are full of anticipation and confidence in the cooperation between the two sides. "In the past few years, Carlyle has worked closely with its management to promote the internationalization of the company, including the establishment of a product quality safety committee and a New Zealand supply chain strategy," said Mr. Relaxation, managing director of the Carlyle Group. We are pleased to see that the company has made steady progress in these years. "Not long ago, the State Council convened a standing meeting, in the deployment and implementation of infant milk powder to strengthen the quality of safety work, but also encourage infant milk powder enterprises mergers, reorganization, to improve the overall industry concentration and competitiveness." In this context, Mengniu dairy and the Union of the great significance. As Gaoning, chairman of Cofco Group, said, the quality and safety of infant formula is a problem of people's livelihood and economic and social problems. A good national brand of milk powder, is the expectations of the people, but also the responsibility of COFCO. It is understood that Mengniu Dairy shareholders issued a takeover offer, is the last year Mengniu Dairy market integration of the fourth major action. Especially since April this year, Mengniu almost one months to create a big event to promote the pace of change in the enterprise. Overall, Mengniu's strategic layout includes both the upstream industry chain of milk source control, but also with the Danish dawn, France Danone and other foreign companies strategic cooperation, through a comprehensive standard international, to achieve from quality control to technical management of the overall upgrade. These measures involve the dairy industry vertical, horizontal cooperation, fully demonstrated the COFCO group under the platform, Mengniu's confidence in the dairy market, and the recent capital market reaction also shows the market for Mengniu a series of major investment initiatives. Appendix: China Mengniu Dairy Co., Ltd. and its subsidiaries in China to produce and sell high-quality milk products. With its main brand Mengniu, the group has become one of the leading dairy producers in China. The group offers a wide range of products, including liquid milk (such as UHT milk, milk beverages and yogurt), ice cream and other milk products (e.g. powdered milk). According to the data of the Chinese Industry Enterprise Information Release Center, Mengniu Liquid Milk Honors 2012 Annual sales of similar products in the national market, sales first. The Swiss bank will be the lead financial advisor for Mengniu Dairy, and HSBC and Standard Chartered as joint financial advisers. About US International Holdings Co., Ltd. the infant milk powder business of the company began in 1998, after years of development, has become an asset of billions of yuan, well-known at home and abroad of the modernization of large companies. The group was listed in Hong Kong on November 1, 2010 and began an international capital operation. The group has been established by more than 1,500 first-level distributors, more than 100,000 retail outlets(including more than 20,000 of the large retail outlets, a strong sales system, achieved high penetration of the market.) In 2012, he recorded an income of $3.655 billion and a net profit of $468 million.