Ocean­wideYili shares agreessurge onto buy Shengmu Gem­worth Milk for pur­chase$2.7 bil­lion

China Daily (USA) - - BUSINESS - ByWUYIYAOBy ZHU WENQIANin Shang­haiin Beijing wuyiyao@chi­nadaily.com.cn zhuwen­qian@chi­nadai­lyusa. com

Chi­nese fam­ily-owned com­pa­nyDairy gi­ant China In­ner Ocean­wide Mon­go­lia Hold­ingsYili In­dus­trial Group Group­said on Co Sun­day Ltd saw thatits share­sit agreed surge onto Mon­day,buy US mort­gagethe first day in­sur­an­ceit re­sumed and trad­in­g­longterm af­ter its care an­nounce­mentin­sur­ance that Gen­worth it will ac­quire Fi­nan­cial China Inc Sheng­mu­for $2.7 bil­lion Or­ganic in Milk cash, Ltd and one plans more to move ex­pand by in Chi­ne­sethe high-end en­ter­prises milk lever­ag­ing­prod­ucts mar­ket. from global re­sourcesYili shares to surged ex­pand 7.32 their per­cent busi­ness and and closed di­ver­si­fyat 17.29 their yuan in­vest­ment($2.55) in Shang­haiport­fo­lio. trad­ing on China Mon­day, Ocean­wide’sthe first in­vest­ment­day it re­sumed plat­form trad­ing. will pay $5.43 per Yili share said for Ne­wit plannedYork Stock to Ex­change-listedac­quire a 37 per­cent Gen­worth,stake in 4.2 In­ner per­cent Mon­go­lia-based­higher than Chi­naGen­worth’s Shengmu, clos­ingthe largest­price last or­gan­icFri­day. milk pro­ducer in China. It will raise China funds Ocean­wideof 9 bil­lion yuan also by promised­of­fer­ing 587 to mil­lion pro­vide shares $600 in mil­lion pri­vate to place­ments, Gen­worth ac­cord­ingto cover theto its US state­ment in­sur­ers’ last debt week. ma­tur­ing Hon­gin 2018 Kong-listedand an­other China$525 mil­lion Sheng­muto strengthen sus­pended its trad­inglife in­sur­anceon Mon­day busi­ness. and will soon re­leaseThe twocom­pa­niesa state­ment saidon the the trans­ac­tion­takeover, the com­pa­ny­would bring said. a win-winYili, one of sit­u­a­tion­the ear­li­est which dairy would pro­duc­ers ben­e­fitin the the or­ganic growth milkof both mar­ket, par­ties. said it plans to in­te­grate “Chi­naits up­stream Ocean­wide high-qual­i­tyis an ideal sup­ply owner chain for ca­pa­bil­i­ties,Gen­worth go­ing ex­pand for­ward. high-end They milk rec­og­nize cat­e­gories, the and strength rapid­lyof ex­pandour mort­gage its or­ganic in­sur­ancemilk busi­ness. plat­form and the Mean­while, im­por­tance Yil­iof long-termplans to care in­vest in­sur­ance538 mil­lionin ad­dress­ingyuan in a an dairy ag­ing pro­duc­tion pop­u­la­tion,”line in Tom New McIn­er­ney,Zealand and spend pres­i­dent about and 2.5 chief bil­lion ex­ec­u­tiveyuan in a of­fi­cer do­mes­ti­cof Gen­worth, project to im­prove­said in a state­ment.the qual­ity of value-added Beijing-basedChi­nadairy prod­ucts,Ocean­wide in ad­di­tion­has di­ver­si­fiedto in­vest­ing into in busi­nesses an R&D cen­ter in­cludin­gand a cloud fi­nan­cial busi­ness ser­vices, plat­form energy,in China, cul­ture and me­dia,By 2017, and re­althe es­tate. out­put value of Shan­the glob­alXue, an or­ganic an­a­lyst milkand in­vest­ment­mar­ket is ex­pect­ed­ex­pert withto reachJIC Group,$15.1 bil­lion,said withan in­creasin­gan an­nual num­ber com­pound of growth Chi­nese rate com­pa­niesof 9.1 per­cent,are now ac­cord­ing tar­get­ingto glob­alser­vices re­searc­hand con­sump­tion-drive­na­gency Trans­parency sec­tors Mar­ket when Re­search. buy­ing over­seas com­pa­nies.China hsa a sig­nif­i­cant growth“In the po­ten­tial­past Chi­ne­se­for or­gan­ic­com­pa­nies milk, thanks pre­ferredto emerg­ingto ac­quire mid­dle-class re­source as­sets, Chi­nese and con­sumer­snow they at­tach­who have more been im­por­tance in­creas­ing­lyto tech­nolo­gies,fa­vor­ing nat­u­ral, ex­per­tise pol­lu­tion­free,and mar­ket or­ganic ex­pan­sion,”dairy prod­ucts.said Shan.

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