China Mengniu Dairy said today (9 April) it would issue HK$2.91bn (US$373m) worth of new shares to settle its purchase of an additional interest in its main operating subsidiary Inner Mongolia Mengniu Dairy.

According to local reports, the Chinese dairy processor is increasing its stake in the subsidiary to 93.29% from 84.32%, by issuing 135.33m new shares, representing 8.67% of its enlarged share capital.

The average trading price of the shares in the previous 60 trading days was HK$21.48 each, the company said.