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- FrieslandCampina to Purchase Shares of Huishan Dairy on the Market for an Amount Equal to at least US$30 million, with 6-year Lock-up period
- An Endorsement of Huishan Dairy's Successful Business Model & Growth Prospects |
HONG KONG, Oct 8, 2014 - (ACN Newswire) - China Huishan Dairy Holdings Company Limited ("Huishan Dairy" or "the Group") (stock code: 6863) has announced today that it has signed a Sale and Purchase Agreement ("SPA") with FrieslandCampina in order to establish a joint venture ("JV") partnership for the manufacture, market and sale of infant milk formula ("IMF") in China whereby each party owns a 50% stake. Under the terms of the SPA, FrieslandCampina has also committed to purchase on the market within six months from Completion shares in Huishan Dairy for an amount equal to at least US$30 million. Such shares shall be subject to a 6-year lock up period.
The JV will be established by FrieslandCampina purchasing, through Huishan BVI, one of Huishan Dairy's wholly owned subsidiaries, a 50% stake in the JV Company, a company that holds all equity interest in one of the Group's production plants in China. FrieslandCampina will pay, in US$, the equivalent of an estimated RMB700 million for its stake. Immediately following Completion, Huishan BVI and FrieslandCampina will each hold 50% of the shares issued by the JV Company.
The business of the JV shall be the production of IMF products from Huishan Dairy's high quality raw milk, as well as sales and marketing in the PRC, the Hong Kong and the Macau Special Administrative Regions of the PRC, together the "Territories" and such other products as agreed between the parties. FrieslandCampina will grant an exclusive licence to the JV for the marketing, distribtution and sale of IMF products in the Territories under an RFC Brand (an existing brand of the FrieslandCampin) through FrieslandCampina's existing network in China so as to enable the JV's IMF products entering into the market at a faster speed. FrieslandCampina will also license the relevant know-how to the JV.
Chairman and Chief Executive Officer of Huishan Dairy, Mr. Yang Kai, said, "The strategic cooperation with FrieslandCampina is an endorsement of Huishan Dairy's successful business model, it testifies to our leading position as the most vertically-integrated dairy company in China, our decades of experience in the dairy industry and our growth prospects. The JV is an important step for Huishan Dairy to bolster its production and sale of IMF products in China. We can provide our high quality raw milk from our own dairy farms in China to the JV whilst the JV can produce dairy products including an infant milk formula under an RFC Brand to be introduced to the Chinese market. The JV can mutually benefit Huishan Dairy and FrieslandCampina in our respective production, sales and marketing capabilities on a domestic and international scale."
Contact:
China Huishan Dairy Holdings Company Limited
Michelle Chan Tel: (852) 2527 7974 Email: michellechan@huishangroup.com
Media Enquiries:
Strategic Financial Relations Limited
Brenda Chan Tel: (852) 2864 4833 Email: brenda.chan@sprg.com.hk
Hawaii He Tel: (852) 2864 4847 Email: hawaii.he@sprg.com.hk
Amelie Ng Tel: (852) 2114 4903 Email: amelie.ng@sprg.com.hk
Fax: (852) 2527 1196
Website: www.sprg.com.hk
Topic: Press release summary
Source: China Huishan Dairy Holdings Ltd.
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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