CITIC unit to buy 25 percent of Ausnutria Dairy for $250 million: Reuters

China’s Ausnutria Dairy Corporation Ltd (1717.HK) said on Friday that CITIC Agri Fund Management Co Ltd would buy a 25.18 percent stake for a total of HK$1.96 billion ($250 million), becoming the dairy products supplier’s biggest shareholder.

CITIC Agri Fund, backed by Chinese state-owned CITIC Group Corp Ltd, will buy 249 million new shares from Ausnutria Dairy for HK$1.29 billion, Hong Kong-listed Ausnutria said in a filing to the stock exchange.

The Chinese fund will also buy 130 million existing shares from Taiwanese liquid medicine firm Center Laboratories Inc (4123.TWO) for HK$673.4 million. Center Laboratories’ stake in Ausnutria will be cut to 24.98 percent from the current 40.28 percent on completion of the sale.

Ausnutria Dairy said proceeds from the new share sale would be used to repay bank loans and for future investments.

Shares of Ausnutria rose as much as 6.1 percent to HK$6.93, the highest since November 2009, before trimming gains. The broader market was up around 1.4 percent.