Singapore state investor Temasek Holdings and Chinese private equity firm Hopu were among the investors

Singapore state investor Temasek Holdings and Chinese private equity firm Hopu were among the investors

Chinese dairy giant Mengniu has sold 471m shares in recently-acquired Yashili International in order to meet Hong Kong listing requirements.

Mengniu, which bought infant formula maker Yashili in June for around HK$11.35bn (US$1.46bn), has sold the HK$1.65bn stake to five investors at HK$3.50 per share.

Singapore sovereign fund Temasek Holdings and Chinese private-equity firm Hopu were among the investors, Mengniu said today (11 November).

Mengniu said it will use the proceeds to repay part of its debt from a facility agreed for the Yashili acquisition.

Mengniu tabled a takeover bid worth $1.6bn for all of Yashili in June, but it received offers for 89.82% of Yashili's stock. The offers were short of a 90% threshold that would have enabled the firm to make a compulsory acquisition of the remaining shares and delist Yashili from the exchange, according to Reuters.

On closure of the offer in August, Mengniu was therefore required to sell down its stake in Yashili to ensure the still-listed company met Hong Kong's public float requirements.

Yashili shares, which have been suspended since 14 August, will resume trading today, the filing noted.