Yili Group expected to take full control of NZ dairy company
The Inner Mongolia Yili Industrial Group is expected to acquire a 100 percent stake in New Zealand's second largest dairy producer - Westland Cooperative Dairy Company Ltd - for about $168.95 million to secure quality and stable supply of raw milk.
The Westland Cooperative Dairy Company Ltd has signed an agreement on March 18 to sell the West Coast dairy cooperative to Hong Kong Jingang Trade Holding Co Ltd, a wholly owned subsidiary of Inner Mongolia Yili Industrial Group for $3.41 per share, representing an enterprise valuation of NZ$588 million ($403 million).
Chief Executive Officer of Yili Group Zhang Jianqiu said in the statement that the offer, if accepted by shareholders, would result in an immediate cash windfall, to farmers, as well as a competitive milk payout.
