Mengniu investors seek HK$1.4b from share sale

Shareholders of China Mengniu Dairy, the mainland's largest milk producer, are raising as much as HK$1.4 billion from the sale of 65 million existing shares, market sources said.

The shares were marketed at an indicative range of HK$20.60 to HK$21.50 each, representing a 4 to 8 per cent discount to the stock's HK$22.40 close yesterday.

ABN Amro Rothschild is arranging the sale.

Mengniu's shares have risen 9.5 per cent this year, compared with the Hang Seng Index's 2.5 per cent gain, and are up 25 per cent since announcing on December 18 three joint ventures with Groupe Danone, the world's biggest yoghurt maker.