mengniu-investors-milk-market-for-78-million-in-secondary-share-sale

Mengniu investors milk market for $78 million in secondary share sale

Anticipated sell-down meets strong demand on a day when the local stock market rebounds; shares sold at 5.6% discount.

By Anette Jönsson

July 02, 2006

The two largest shareholders in China Mengniu Dairy on Friday June 30 sold a 4.9% stake in the company for HK$610.9 million $78 million after the end of a one-year lock-up that was imposed after their previous sale.

The placement came on a day when the Hong Kong stockmarket added just over 400 points or 2.5% to finish at 16,267 points - its highest level in six weeks. Market watchers said this was a sign investors are getting more confident about putting money into equities again.

The combined offer comprised 66.4 million existing shares in the dairy products manufacturer which were sold at the top of the HK$9 to HK$9.20 price range...

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