November 17, 2004

China's Sanyuan Food Acquires Milk Company in South China

The Shanghai-listed Beijing Sanyuan Food Co., Ltd. announced on Monday that it had acquired a 90% stake in the Liuzhou Milk Industry Co., Ltd. in south China's Guangxi Zhuang Autonomous Region at a cost of RMB 7.77 million (US$938,780). Sanyuan is a main milk supplier in Beijing.

The Liuzhou milk company was formerly owned by the Liuzhou Animal Husbandry and Aquatics Bureau, which also transferred the remaining 10% interest to seven natural persons for RMB 863,360.

According to Sanyuan, the Liuzhou company will be reorganized into the Liuzhou Sanyuan Tian'ai Milk Co., Ltd.

Sanyuan's board has approved the acquisition. But it is yet to be approved by the financial authorities of Liuzhou City as well as the department in charge of state assets supervision and administration.