BEIJING, Oct. 28, 2021 /PRNewswire/ — On October 27, Internal Mongolia Yili Industrial Group Co., Ltd. (“Yili Group” or “Yili”), the biggest dairy producer in Asia, introduced that it took a stake in goat milk formulation large Ausnutria Dairy Co. Ltd. (“Ausnutria Dairy” or “Ausnutria”) and have become its largest shareholder. This marked the biggest M&A deal for China’s dairy business in recent times.
In keeping with the announcement by Yili Group, the corporate will group up with Ausnutria Dairy by its wholly-owned subsidiary Hong Kong Jingang Commerce Holding Co., Ltd. (“Jingang”), as a transfer to additional its steps into toddler formulation and diet merchandise.
Jingang will purchase a complete of 531 million shares held by earlier shareholders at a value of HK$10.06 per share, which represents roughly 30.89% of the entire variety of issued shares of Ausnutria. As well as, Ausnutria will challenge 90 million new shares to Jingang at a value of HK$10.06 per share. If the above two transactions are efficiently accomplished, Jingang will maintain a complete of 621 million shares of Ausnutria, accounting for 34.33% of the corporate’s issued shares in complete, thereby making Yili the biggest single shareholder of the corporate.
Dairy large joins fingers with chief of goat milk formulation, forging a powerful new alliance
Pan Gang, Chairman of Yili Group, mentioned that as the 2 enterprises have a lot in widespread, Yili acknowledges the values, strategic format, and the core group of Ausnutria. Within the years to return, Yili will deliver into full play its strengths when it comes to firm measurement, model constructing, channels and industrial chain to allow Ausnutria’s sound improvement over the long run.
Yan Weibin, Chairman of Ausnutria, mentioned a strategic investor like Yili will not solely create synergy within the industrial chain but additionally empower Ausnutria when it comes to administration and strategic planning.
Partnership will strengthen Yili’s management in milk formulation and facilitate the corporate’s entry into the diet merchandise market.
Toddler formulation that includes excessive development charge and excessive worth is a class that Yili will deal with and faucet into its full potential sooner or later. In August 2021, Yili’s Jinlingguan Sequence took the lead amongst all manufacturers of its form when it comes to the expansion charge of all channels within the Chinese language market. Yili can be capturing a rising share of the goat milk toddler formulation market. The newly launched Jinlingguan UITSTEKEND GEITENMELK stood out with its premium high quality and noticed a surge in gross sales as excessive as 200%.
As one of many market leaders in toddler formulation, Ausnutria has seized the market alternative provided by goat milk. Kabrita, a goat milk formulation model launched by Ausnutria, has turn out to be a flagship product in China’s toddler formulation market. Ausnutria has clinched the primary place in complete gross sales of goat milk formulation throughout the globe.
When the transaction between the 2 events is accomplished, Ausnutria’s long-term improvement will likely be considerably boosted, which is able to in flip velocity up Yili’s endeavor to meet its strategic format in milk formulation. Setting toddler formulation as the place to begin, the 2 corporations will complement one another when it comes to materials buying, advertising fashions, locational benefits, and R&D.
Ausnutria has additionally established a complete format in diet merchandise resembling dietary dietary supplements, probiotics, and meals for particular medical functions, and it’s creating right into a high-end diet product and well being service supplier overlaying all ages and the total life cycle. At this level, the combination of optimum assets from each side will even facilitate Yili’s entry into the market of diet merchandise.
SOURCE Yili Group
