April 13, 2009
Sanlu Group's last auction unsuccessful
The fourth and final planned auction of Sanlu Group's assets failed in Shijiazhuang Monday (Apr 13).
The assets at Monday's auction included the group's shares in 11 dairy
companies with Sanlu holding controlling stakes in seven of these companies.
Four bidders attended the auction but none of them took the bid after the auctioneer announced the prices of the Sanlu
assets, including RMB51 million for 70 percent of shares in the Tangshan Kangsheng Dairy Company.
Yuan Guoliang, chairman of the Hebei Jiahai Auction Co Ltd, said the auction failed as bidders might be deterred by the high prices. Yuan added that the auction company would cooperate with the bankruptcy administrator to deal with the remaining assets of Sanlu.
Sanlu had been China's leading seller of milk powder for 15 years until the melamine-tainted milk scandal erupted in September last year and it was declared bankrupt earlier this year for failing to repay outstanding debts.
Beijing-based Sanyuan Group
successfully bid RMB616.5 million to purchase Sanlu's core assets in the first auction on March 4.
US$1=RMB6.833 (Apr 13)