[ET Net News Agency, 28 April 2017] China Shengmu Organic Milk (01432) said the
proposed offer by Inner Mongolia Yili Industrial Group Co., Ltd lapsed after Yili's
proposed acquisition of 37% stake terminated.
China Shengmu said conditions precedent under the agreement have not been fulfilled in
entirety and in particular the approval of the declaration of concentration of business
operators for the transactions from the Anti-Monopoly Bureau of the Ministry of Commerce
has not been received. Since such approval has not been received, the conditions precedent
of the SAFE registration approval for the settlement of the consideration outside the PRC
cannot be fulfilled.
China Shengmu considers the lapse of the offers will not have any negative impact on
their dealings in the ordinary course of business and their existing cordial relationship
as industry associates, and in particular, that Yili, as a dominant player in the milk
industry in the PRC, will continue to support the growth and development of the raw milk
business of China Shengmu.
Trading in shares of China Shengmu will be resumed this morning. (HL)