Chinese dairy company Yili published an announcement, stating that its wholly-owned subsidiary completed acquisition and delivery of the entire stake in New Zealand dairy giant Westland Co-operative Dairy Company Limited.
According to the announcement, Yili's wholly-owned subsidiary has completed full payments to Westland shareholders. The transaction price is NZD3.41 per share, totaling NZD243.77 million. The acquisition is fully implemented and Yili's wholly-owned subsidiary owns the 100% stake in Westland since the equity delivery date.
In March 2019, Yili announced that to gain quality and stable milk source from New Zealand, the company planned to acquire the 100% stake in New Zealand's Westland for no more than NZD246 million. In July 2019, Westland shareholders approved Yili's proposal at a high voting rate.
Public files show that Westland is the second largest dairy cooperative in New Zealand and the company's raw milk supply accounts for about 4% of the total raw milk supply in New Zealand. At the same time, Westland's main businesses include manufacturing and sales of various dairy products, covering milk powder, butter, protein powder, high temperature sterilization products and infant formula base powder. By July 31, 2017, Westland's operating revenue was NZD630 million and its net profit was NZD1.51 million.
By acquiring Westland, Yili will be able to gain quality and stable milk source from New Zealand to further improve its competitiveness and enhance its leading position in the dairy industry.