BRIEF: Youran Dairy raises $301 million via top-up placement
China Youran Dairy Group Ltd. (9858.HK) said on Friday it raised HK$2.35 billion ($301 million) through a top-up placement priced at HK$3.92 per share, representing an 8.84% discount to the previous day’s close of HK$4.30.
According to the announcement, the seller of the shares is Boyuan Capital Ltd., a wholly owned subsidiary of controlling shareholder Yili (600887.SH), which sold about 300 million existing shares, equivalent to about 7.69% of the company’s issued share capital, to six or more independent professional and institutional investors.
Upon completion of the placement, Boyuan will subscribe for an equal number of 300 million new shares at the same price of HK$3.92 apiece, which will raise the controlling shareholder’s stake from about 31.51% to roughly 36.07%.
The company said the net proceeds will be used mainly for general working capital and to support business development, strengthening its financial position and operational flexibility in line with its medium- to long-term strategy.
Youran’s stock opened lower on Friday before turning higher, closing at HK$4.49 by the midday break, up 4.42%.
By Lee Shih Ta
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