Monday, October 31, 2011

China Dairy up on F&N's stake sale

Shares of China Dairy Group surged 36.6% today after Fraser and Neave said it had agreed to sell its entire 29.5% stake in the company for nearly three times its Friday closing price.

At 10:55 a.m., China Dairy shares were trading at $0.138. The broader Straits Times Index <.FTSTI> was 0.8% lower.

F&N said in a statement that it had agreed to sell 129.7 million shares in China Dairy to Oasis Ventures, an affiliate of Shaanxi Coal and Chemical Industry Group, for a total of $37.9 million.

This works out to $0.292 for each China Dairy share.

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