Bright Dairy's subsidiary New Lite plans to sell its North Island assets in New Zealand for USD 170 million

According to the announcement from Guangming Dairy (600597.SH), its subsidiary Newlight will sell its North Island assets in New Zealand to Abbott Laboratories for USD 170 million, with Abbott Laboratories in Ireland providing a guarantee for the buyer.

Regarding the asset sale, the Pokeno factory is located at 45 McDonald Avenue, Pokeno, Waikato District. The site is adjacent to the North Island's milk supply area, with the furthest raw milk transportation distance not exceeding 150 kilometers. The factory was completed in 2020, with an annual production capacity of 40,000 tons, and has become the most advanced production base for nutritional powder, capable of producing a variety of products from high-quality industrial powder to nutritional formula milk powder (including dairy and plant-based formula powders). The RPD site is mainly used for installing production lines for mixing and packaging milk powder products, complementing the production process of the Pokeno factory. The North Island assets being sold include equipment and other related assets on the leased site. The Jerry Green warehouse is used for storing finished products and raw materials. The North Island assets being sold include related assets on the leased site.

The announcement states that the project is expected to complete its delivery by April 2026, with an estimated increase in Newlight's net profit of approximately NZD 10 million to 15 million for the fiscal year 2026. The sale of the North Island assets will provide Newlight with sufficient cash flow to repay debts