January 15, 2014

Mengniu and WhiteWave acquire Yashili subsidiary for US$62.29 million

Yashili International Holdings Ltd. (Yashili) has agreed to sell 100% shares of its subsidiary Yashili (Zhengzhou) to Mengniu Investment and WhiteWave for RMB376.66 million (US$62.29 million), the latest movement in the consolidation of China's dairy industry.

With a 51% and a 49% stake respectively, Mengniu Investment and WhiteWave will form a joint venture through the acquisition of Yashili (Zhengzhou).

Mengniu International, a subsidiary of China Mengniu Dairy Co., Ltd. (Mengniu), owns 76.58% shares of Yashili and is the controlling shareholder. Therefore, the joint venture will be an indirect subsidiary of Mengniu.

Located in Henan province, the principal asset of Yashili (Zhengzhou) is a factory, which is currently under construction and will be mainly engaged in the manufacture, packaging and distribution of nutritious products.