Shares of Bright Dairy & Food, a Shanghai government-backed dairy products maker, surged to a record yesterday after a media report said Shanghai Industrial, one of its major shareholders, plans to offload its 30.78 per cent stake in the company.
Mainland dairy giant Mengniu Dairy was reported to be one of the buyers of the stake.
Both Bright and Shanghai Industrial denied the report, saying they have neither finalised the company's share reform plan nor intended to sell down its shares.
Bright's shares in Shanghai gained 2.4 per cent to close at 5.54 yuan. In Hong Kong, Shanghai Industrial fell 0.92 per cent to $16.10, while Mengiu Dairy climbed 1.26 per cent to $8.05.
According to the report, Shanghai Industrial wanted to sell its stake in Bright to avoid losses from the share reform plan.
Shanghai Dairy, another government-backed firm which also has a 30.78 per cent stake in Bright, and Danone, the world's largest yogurt maker and a minority shareholder with an 11.5 per cent stake, were named together with Mengniu Dairy as interested parties for Shanghai Industrial's stake.
