China Mengniu Dairy Company Limited (SEHK:2319) made an offer to acquire remaining 62.3% stake in China Modern Dairy Holdings Ltd. (SEHK:1117) for approximately $950 million on January 4, 2017. In a related transaction, China Mengniu Dairy Company entered into a sale and purchase agreement to acquire an additional 18.2% stake in China Modern Dairy Holdings for approximately $240 million. Under the transaction, China Mengniu Dairy Company Limited will acquire the remaining shares at $0.25 per share in cash. The consideration will be funded by internal resources and external debt facilities.

Julian Juul WOLHARDT and HUI Chi Max will resign as China Modern Dairy's Directors with effect from first closing date of offer. The transaction is subject to China Mengniu Dairy Company receiving acceptances of more than 50% of the total issued capital of China Modern Dairy Holdings. China Mengniu Dairy's Directors recommend that the shareholders vote in favor of the transaction. China Modern Dairy Holdings has established an independent Board committee to advise on the transaction. The extraordinary general meeting of China Mengniu Dairy will be held on February 3, 2017. China Mengniu Dairy shareholder approved the transaction on February 3, 2017. The offer will be open for acceptance for 21 days following the date on which composite document is posted. The transaction has been approved by the Independent Board committee. The offer opening date is February 14, 2017 and first closing date of offer is March 7, 2017. As on March 7, 2017, China Mengniu Dairy Company Limited offers are unconditional in all respects and now the transaction is expected to be completed by March 21, 2017.

UBS Investment Bank Asia Ltd. and DBS Asia Capital Limited acted as financial advisors to China Mengniu Dairy. Gwen Wong, Kay Ian Ng , Alan Zhang , Carmen Leung and Jerry Gao of Sullivan & Cromwell LLP acted as legal advisors to China Mengniu Dairy. Computershare Hong Kong Investor Services Limited acted as registrar to China Mengniu Dairy. Somerley Capital Limited acted as a financial advisor while Deloitte Touche Tohmatsu Hong Kong SAR acted as accountant for China Modern Dairy Holdings. As of February 20, 2017, KKR & Co. L.P. (NYSE:KKR) and CDH Investments completed the sale of their combined stake in China Modern Dairy Holdings Ltd.