Ausnutria Dairy Corporation has entered into an agreement to issue new shares to CITIC Agricultural Fund, positioning it as the largest shareholder and securing substantial capital for growth and debt relief.

Target Information

Ausnutria Dairy Corporation Ltd. (stock code: 1717.HK) is a publicly listed company specializing in dairy products in Hong Kong. Recently, the company announced on April 4 that it has signed a share issuance agreement with CITIC Agricultural Industry Fund Management Co., Ltd. According to this agreement, Ausnutria plans to issue approximately 249 million new shares, equivalent to 19.82% of its existing shares, and 16.54% after expanding its share capital. The fundraising is expected to generate HKD 1.289 billion (approximately RMB 1.035 billion), with a share price set at HKD 5.18 (about RMB 4.16). This move is aimed at strengthening the company's shareholder structure.

Additionally, Ausnutria has received notification from its major shareholder, Shengde Pharmaceutical Co., Ltd., regarding a share transfer agreement to CITIC Agricultural Fund, involving the transfer of approximately 130 million shares (10.35% of existing shares) for about HKD 673 million (around RMB 540 million) at the same share price of HKD 5.18. If completed, CITIC Agricultural Fund will become the largest single shareholder of Ausnutria, holding 25.18% of the company’s shares post-expansion. Shengde Pharmaceutical will retain a significant stake of 24.98% following the transaction.

Industry Overview

The dairy industry in China has witnessed significant growth in recent years, driven by increasing demand for nutritious products among the populace. This growth is attributed to rising health awareness and consumer preferences for high-qualit