Financial News
Written by: Zhang Weilun
2021-03-01 09:03
Last update date: 2021-03-01 09:03
Mengniu Development (2319) issued an announcement stating that Danone is reviewing part of its investment portfolio. Danone has reached an agreement with COFCO Dairy Investment to convert its indirect holding of Mengniu’s equity through COFCO Dairy Investment to direct holding Equity.
COFCO Dairy Investment is currently deemed to hold a 31.25% interest in Mengniu.
The aforementioned conversion is subject to regulatory approval. Once completed, Danone will hold 9.82% of Mengniu’s direct equity, and COFCO’s investment in Mengniu will reduce its equity to 21.43%.
Mengniu pointed out that it was informed that Danone is considering reducing its holdings of company shares in the next step.
Mengniu pointed out that Danone has made relevant equity structure arrangements out of its own needs, and the company expresses its understanding and respect.
At the same time, COFCO Dairy Investment is still the company's largest single shareholder. I believe that COFCO will continue to trust and fully support the company's board of directors and management, fully recognize the company's achievements, and be confident in its future development.
The company’s board of directors believes that the future business strategy and plans will not be changed due to Danone’s above-mentioned arrangements. Mengniu will more efficiently implement the next five-year development plan to achieve the 2020 strategic goal of creating a new Mengniu in five years.
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Mengniu