July 06,2009
China Mengniu Dairy <2319.HK> will be in focus after China
said on Monday that it will raise HK$3.058 billion ($394.6
million) from a share sale to China National Oils, Foodstuffs and
Cereals Corp (COFCO) and Hopu Investment Management.
Through a special purpose vehicle, both COFCO and Hopu will
subscribe for the shares at HK$17.60 a piece, which would be a
7.85 percent discount to China Mengniu's Friday closing price of
HK$19.10 per share before the announcement.
COFCO will own a 70 percent stake in the special purpose
vehicle, while Hopu will own the remaining 30 percent.
The stock, which was suspended on Monday, will resume trade
on Tuesday.
The benchmark Hang Seng Index <.HSI> dropped 1.2 percent to
17,979.41 on Monday as falling energy and other commodity prices
weighed.
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