Understanding the Market | CH MODERN D rose nearly 5% in the morning as the company’s acquisition of CHINA SHENGMU triggered a full takeover bid with a total price exceeding HKD 2 billion
CH MODERN D rose nearly 5% in the morning, and as of the time of writing, it has increased by 4.96%, trading at HKD 1.27, with a transaction volume of HKD 10.3741 million. In terms of news, CH MODERN D recently announced that it will acquire approximately 1.28% of the equity of CHINA SHENGMU for HKD 37.52 million. After the completion of this acquisition, the shareholding ratio of CH MODERN D and its concerted action party Mengniu will increase from 29.99% to over 30%, triggering a mandatory offer. CH MODERN D will acquire the remaining shares of CHINA SHENGMU at a price of HKD 0.35 per share, with a maximum total price of approximately HKD 2.016 billion. This transaction is also seen as an integration of Mengniu's upstream resources. It is reported that Mengniu is the controlling shareholder of CH MODERN D and also the largest shareholder of CHINA SHENGMU. After the transaction is completed, CH MODERN D and CHINA SHENGMU will achieve a "strong alliance." The announcement stated that the combined herd size is expected to exceed 610,000 heads, with annual raw milk production expected to exceed 4 million tons, positioning it among the world's leading livestock farming enterprises. The scale effect will significantly enhance its bargaining power in the procurement of bulk materials such as feed, effectively reducing unit production costs and consolidating industry cost advantages
According to Zhitong Finance APP, CH MODERN D (01117) rose nearly 5% in the morning, and as of the time of publication, it was up 4.96%, trading at HKD 1.27, with a transaction volume of HKD 10.3741 million.
In terms of news, CH MODERN D recently announced that it will acquire approximately 1.28% of the equity of CHINA SHENGMU for HKD 37.52 million. After the completion of this acquisition, the shareholding ratio of CH MODERN D and its concerted action party Mengniu will exceed 30% from 29.99%, triggering a mandatory tender offer. CH MODERN D will acquire the remaining shares of CHINA SHENGMU at a price of HKD 0.35 per share, with a maximum total price of approximately HKD 2.016 billion. This transaction is also seen as an integration of Mengniu's upstream resources. It is reported that Mengniu is the controlling shareholder of CH MODERN D and also the largest shareholder of CHINA SHENGMU.
After the transaction is completed, CH MODERN D and CHINA SHENGMU will achieve a "strong alliance." The announcement stated that the combined herd size is expected to exceed 610,000 heads, with annual raw milk production expected to exceed 4 million tons, ranking among the world's leading livestock farming enterprises. The scale effect will significantly enhance its bargaining power in the procurement of bulk materials such as feed, effectively reducing unit production costs and consolidating industry cost advantages
