date:May 20, 2013
COFCO, the state-owned food company in China, has signed an agreement with Danone, under which the two parties will establish a joint venture. As part of the agreement, COFCO will sell 148,014,022 shares in China Mengniu to the joint-venture.
Under the terms of the agreement, COFCO and Danone will own 51% and 49% stakes respectively in the new company. Following the transaction, COFCO will continue to be the single largest shareholder in Mengniu with 27.83% stake.
COFCO chairman Frank Ning