Mengniu shareholders in HK$1.22b placement

Two shareholders of China Mengniu Dairy, the biggest producer of liquid milk on the mainland, are raising HK$1.22 billion in a share placement. Jinniu Milk Industry and Yinniu Milk Industry - majority owned by Mengniu's top management, including chairman Niu Gensheng, who stepped down as chief executive this year - are selling 50.70 million shares at HK$23.75 to HK$24.15 each. Last year Mengniu raised HK$3 billion from issuing new shares to a joint venture established by state-owned food processing, manufacturer and trader COFCO and HOPU, a Beijing-based private equity fund, making them the largest shareholders with a 20 per cent stake.