Chinese dairy company Mengniu has published a report stating that COFCO and Hopu Investment Management will buy a 20.3% stake in Mengniu at the price of HKD17.6 per share, for a total of about HKD6.1 billion.
Mengniu will reportedly use the money to expand its existing businesses or seek investment opportunities in the dairy industry and its upstream industries.
According to Mengniu, the company has signed an agreement with COFCO and Hopu. Under the agreement, COFCO and Hopu will set up a special company, in which, COFCO will own a 70% stake while Hopu will own the remaining 30%. The special company will be responsible for holding the rights and interests of Mengniu.
Hopu is a USD2.5 billion fund run by Goldman Sachs Group's China partner Fang Fenglei.