Yili Becomes the Largest Shareholder of Ausnutria, Accelerating its Development of Goat Milk Formula and Nutrition Products
PR92672
BEIJING, Oct. 28, 2021 /PRNewswire=KYODO JBN/ --
On October 27, Inner Mongolia Yili Industrial Group Co., Ltd. ("Yili Group" or
"Yili"), the largest dairy producer in Asia, announced that it took a stake in
goat milk formula giant Ausnutria Dairy Co. Ltd. ("Ausnutria Dairy" or
"Ausnutria") and became its largest shareholder. This marked the largest M&A
deal for China's dairy industry in recent years.
According to the announcement by Yili Group, the company will team up with
Ausnutria Dairy through its wholly-owned subsidiary Hong Kong Jingang Trade
Holding Co., Ltd. ("Jingang"), as a move to further its steps into infant
formula and nutrition products.
Jingang will acquire a total of 531million shares held by previous shareholders
at a price of HK$10.06 per share, which represents approximately 30.89% of the
total number of issued shares of Ausnutria. In addition, Ausnutria will issue
90million new shares to Jingang at a price of HK$10.06 per share. If the above
two transactions are successfully completed, Jingang will hold a total of
621million shares of Ausnutria, accounting for 34.33% of the company's issued
shares in total, thereby making Yili the largest single shareholder of the
company.
Dairy giant joins hands with leader of goat milk formula, forging a strong new
alliance
Pan Gang, Chairman of Yili Group, said that as the two enterprises have much in
common, Yili recognizes the values, strategic layout, and the core team of
Ausnutria. In the years to come, Yili will bring into full play its strengths
in terms of company size, brand building, channels and industrial chain to
enable Ausnutria's sound development over the long term.
Yan Weibin, Chairman of Ausnutria, said a strategic investor like Yili won't
only create synergy in the industrial chain but also empower Ausnutria in terms
of management and strategic planning.
Partnership will strengthen Yili's leadership in milk formula and facilitate
the company's entry into the nutrition products market.
Infant formula featuring high growth rate and high value is a category that
Yili will focus on and tap into its full potential in the future. In
August2021, Yili's Jinlingguan Series took the lead among all brands of its
kind in terms of the growth rate of all channels in the Chinese market. Yili is
also capturing a growing share of the goat milk infant formula market. The
newly launched Jinlingguan UITSTEKEND GEITENMELK stood out with its premium
quality and saw a surge in sales as high as 200%.
As one of the market leaders in infant formula, Ausnutria has seized the market
opportunity offered by goat milk. Kabrita, a goat milk formula brand launched
by Ausnutria, has become a flagship product in China's infant formula market.
Ausnutria has clinched the first position in total sales of goat milk formula
across the globe.
When the transaction between the two parties is completed, Ausnutria's
long-term development will be significantly boosted, which will in turn speed
up Yili's endeavor to fulfill its strategic layout in milk formula. Setting
infant formula as the starting point, the 2companies will complement each other
in terms of material purchasing, marketing models, locational advantages, and
R&D.
Ausnutria has also established a comprehensive layout in nutrition products
such as dietary supplements, probiotics, and food for special medical purposes,
and it is developing into a high-end nutrition product and health service
provider covering all ages and the full life cycle. At this point, the
integration of optimal resources from both sides will also facilitate Yili's
entry into the market of nutrition products.
Source: Yili Group
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