Parent set to control Bright Dairy after SIH stake buy

SHANGHAI: Bright Food (Group) has acquired a controlling stake in its arm Bright Dairy from Shanghai Industrial Holdings (SIH), giving a new impetus to the restructuring of local government-owned assets.

In a statement to the Shanghai Stock Exchange, Bright Dairy said Bright Food has agreed to buy an additional 30.2 percent of its outstanding share capital from Shanghai Industrial for a total of 1.55 billion yuan, or 4.93 yuan per share, compared to the closing price of 7.95 yuan yesterday.

The acquisition, arranged by the Shanghai municipal government which controls all three companies, will boost Bright Food's interest in Bright Dairy to 65.45 percent, giving the country's largest food industry group company majority control of Shanghai's dominant dairy producer.