October 11, 2011

China's dairy products maker Shanghai Bright Dairy & Food Co Ltd announced Monday (Oct 10) that it plans to raise up to RMB1.42 billion (US$223 million) through a private placement.

The company said it plans to issue up to 178 million shares at RMB8 (US$1.25) apiece. Proceeds from the deal will be used to fund a highly automatic production line with a daily capacity of 2,000 tonnes of dairy products.

It is concentrating all its production units in an industrial park in Shanghai Minhang district that put together production, quality control, R&D and new technologies related to dairy products.

The private placement is still subject to approval from shareholders and regulators. Upon the completion of the deal, Bright Food (Group) Co Ltd, the parent of Bright Dairy & Food, will hold a 55.58% stake in the subsidiary.