China Mengniu Dairy to buy Australian baby formula firm for $983m

Photo: Bellamy's Australia website

China Mengniu Dairy Company Ltd will buy infant formula maker Bellamy’s Australia Ltd for A$1.43 billion ($982.98 million), the Australian company said on Monday after its board accepted the Chinese firm’s offer.

The A$12.65-per-share deal represents a 52% premium to Bellamy’s Friday closing price of A$8.32, excluding a special dividend of $0.60 per share paid by Bellamy’s prior to implementation of the scheme.

Bellamy’s board unanimously recommended that the shareholders vote in favour of the offer.

“It (Mengniu) offers a strong platform for distribution and success in China, and a foundation for growth in the organic dairy and food industry in Australia,” Bellamy’s Chief Executive Officer Andrew Cohen said in a statement.

Last month, Bellamy’s said its annual profit almost halved as sales dropped 19%, hampered by a Chinese crackdown on imports.

The company, once feted for its China exposure, has faced increasing challenges with new Chinese customs rules for e-commerce purchases crimping informal “daigou” exports and required clearances from health authorities delaying sales from a Bellamy’s plant in Australia.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.