Sequoia quits Feihe funding partnership

BEIJING - Feihe International Inc, the first Chinese dairy company to list overseas, is facing a withdrawal by its venture capital partner, which may provoke huge cash-flow pressures.

According to a news release on the New York Stock Exchange, the milk powder manufacturer will end its cooperation with Sequoia Capital China, which began in August 2009 when the venture capital company bought a 10.5 percent stake.

Feihe will refund Sequoia's total investment of $63 million, plus about $2 million in interest, with four separate payments over the course of the next year.