6 Jan 2010 06:22

Shanghai Industrial sells stake in Guangming Dairy

Shanghai. January 6. INTERFAX-CHINA - Hong Kong Stock Exchange-listed Shanghai Industrial Holdings Ltd. has offloaded its shareholding in Guangming Dairy Co. Ltd., Guangming Dairy announced on Jan. 5.

According to the announcement, Shanghai Industrial, formerly Guangming Dairy's second largest shareholder, has sold its entire 30.17 percent stake in Guangming Dairy for RMB 1.55 billion ($226.94 million) to Guangming Food (Group) Co. Ltd., which already held a 35.28 percent stake.

At present, Guangming Food remains the largest shareholder of Guangming Dairy with a 65.45 percent stake.

"The stake acquisition is in line with Guangming Food's main business ventures in dairy, wine, sugar and food distribution whereas Guangming Dairy stood out in Shanghai Industrial's portfolio of mainly pharmaceutical and real estate businesses," Chen Gang, an analyst from Guojin Securities, told Interfax on Jan. 5.

At present, Shanghai Industrial owns stakes in eight pharmaceutical companies including Shanghai Medical Instruments Co. Ltd., Xiamen Traditional Chinese Medicine Co. Ltd. and Shanghai Sunway Biotech Co. Ltd.