Origo not eyeing dairy investment

Origo not eyeing dairy investment

Chinese private-equity group Origo Partners is not in talks to purchase Australian dairy group United Dairy Power, just-food understands.

Australian reports have suggested that the Beijing-based investment firm could be willing to pay around A$70m (US$61.5m) for the company, which operates two milk processing facilities in southern Australia.

Chinese investors are increasingly looking to the Australian dairy sector in order to meet growing demand for high-quality, safe dairy products. However, a source close to Origo insisted there is "no truth whatsoever" in the rumour it wants to invest in UDP.

While Origo does hold some investments in the food sector, it is understood the firm is not interested in expanding into dairy.

In August, the private-equity group filed a securities announcement revealing it would "commit to making no new investments until further notice".

"The company will concentrate on managing positions in existing portfolio companies and will consider follow on financings only where these will protect or enhance value," Origo said.

For its part, UDP is reportedly looking to unload a minority stake in the business.

Origo and UDP were not immediately available for comment.