KKR divests final stake in China Modern Dairy for $80m
Private investment firm Kohlberg Kravis Roberts (KKR) has divested its entire stake in China Modern Dairy, for around $80m.
The company sold 168 million shares at HK$3.70 ($0.47) per share.
KKR member Julian Wolhardt was quoted by Reuters as saying: "We are very proud of the partnership we have had with Modern Dairy since 2007 in supporting their efforts to provide safe and healthy drinking milk to Chinese consumers."
KKR, along with CDH Investment, purchased a stake in China Modern Dairy in 2008.
KKR bought 34.5% stake in China Modern Dairy for $150m. KKR divested partly when the dairy announced an IPO in 2010.
KKR and CDH sold 26.9% stake in 2013 to dairy products maker China Mengniu Dairy for HK$3.18bn ($410m). Modern Dairy was a major supplier to Mengniu and latter acquired a stake in the former to have a better control on its supplies.
China Modern Dairy generated CNY2585m ($419.2m) in total turnover of milk produced during the first six months ended 30 June, marking an increase of around 86.2% compared to the same period in 2013.
China Modern Dairy sold 463,991t of milk, up 51.6% compared with corresponding period last year.
Image:China Modern Dairy generated $419.2m in total turnover of milk during the first six months of this year. Photo: courtesy of chiangmaisabaaidee / FreeDigitalPhotos.net.