June 19, 2014

Dakang raises fund for acquisition of two NZ dairy farms

Hunan Dakang Pasture Farming Co., Ltd. (Dakang) announced on June 17 that the company plans to raise RMB2.51 billion (US$402.93 million) through private placement for the acquisition of two New Zealand dairy farms.

Dakang says it will issue no more than 259 million shares at a price of RMB9.69/share (US$1.56/share), the funds of which will be used to acquire two dairy farms in North Island of New Zealand.

Dakang says the acquisition will help the company achieve autarky in fresh milk supply and build a complete farm-to-table industrial chain in its dairy business.

Dakang, a company mainly engaged in production of pigs and feedstuffs, entered the dairy business in 2013.