Sector News

China’s Bright Dairy to raise $1.45 bln, buy Tnuva from state-owned parent

June 10, 2015
Consumer Packaged Goods
(Reuters) – Chinese milk producer Bright Dairy & Food Co Ltd plans to raise up to 9 billion yuan ($1.45 billion) from select investors to buy Israeli food firm Tnuva from its state-owned parent, Bright Food Group Co Ltd , the company said.
 
The acquisition would enable Bright Dairy to expand abroad, and bring Tnuva’s high-end dairy products and production technology into the Chinese market, Shanghai-based Bright Dairy said in an exchange filing late on Monday.
 
Bright Dairy plans to sell up to 559 million China “A” shares in a private placement at 16.10 yuan each, a discount to the stock’s last trading price of 19.84 yuan, to buy Bright Food Group’s entire stake in Bright Food Singapore Investment Pte Ltd, an investment vehicle which controls Tnuva.
 
The stock, which has been suspended from trading for three months pending the announcement, rose its 10 percent maximum when it resumed trading on Tuesday.
 
Several listed firms have recently purchased assets from their state-owned parents as China’s government increasingly uses the capital markets to reform its enterprises.
 
Parent Bright Food Group started the process to buy Tnuva in May last year from private equity firm Apax and Partners . It completed the deal earlier this year and now holds around 76.7 percent of Tnuva, Israel’s largest food company.
 
Israel’s Mivtach Shamir Holdings, another major shareholder in Tnuva, said last year that the deal valued all of the dairy company at about $2.5 billion, up from $1 billion when Apax and Mivtach took control in 2008.
 
($1 = 6.2053 Chinese yuan renminbi) (Reporting by Samuel Shen and Sue-Lin Wong; Editing by Adam Jourdan and Miral Fahmy)

comments closed

Related News

December 10, 2023

L’Oréal acquires Danish microbiome research firm Lactobio

Consumer Packaged Goods

L’Oréal has acquired Lactobio, a Dabish probiotic and microbiome research company based in Copenhagen. Lactobio was founded in 2017 by Søren Kjærulff and Charlotte Vedel, who developed a proprietary microbiome discovery platform and screening method to select the most effective and safe strains.

December 10, 2023

Deliveroo delves into personal care and beauty takeaway

Consumer Packaged Goods

Deliveroo introduces “Deliveroo Shopping,” an on-demand online retail service alongside its existing restaurant food and grocery offering. With personal care and cosmetics on offer, the platform will host a range of retail products, from electronics to pet food, from flowers to toys.

December 10, 2023

Nestlé to invest $1.2bn in Brazil

Consumer Packaged Goods

The funds will be primarily allocated to boost business growth, integrate new technologies in the industry, expand manufacturing facilities, transform its portfolio and advance the sustainability agenda in Nestlé’s chocolate, coffee, pet care and nutrition segments in Brazil.

How can we help you?

We're easy to reach