Xin Lang Cai Jing·2025-10-31 01:44Core Viewpoint - China Shengmu (01432) saw a significant stock price increase of nearly 10% following announcements from Modern Dairy and China Shengmu regarding shareholding changes and potential cash offers [1] Group 1: Stock Performance - China Shengmu's stock opened nearly 10% higher and was reported at 0.335 HKD, with a trading volume of 1.7723 million HKD [1] Group 2: Shareholding Changes - Modern Dairy announced an investment of 37.52 million HKD to increase its stake in China Shengmu by 1.28% [1] - Mengniu Dairy (02319) granted voting rights of its 24.9% stake in China Shengmu to Modern Dairy [1] Group 3: Potential Cash Offer - Modern Dairy proposed a conditional cash offer for China Shengmu at a price of 0.35 HKD per share, representing a 14.75% premium over the previous closing price of 0.305 HKD [1] - The total cost of the offer could reach approximately 2.02 billion HKD [1] Group 4: Strategic Implications - The merger is expected to leverage economies of scale to reduce procurement costs, with a combined herd size exceeding 610,000 heads [1] - The expanded scale will allow Modern Dairy to benefit from production advantages, securing better prices for bulk materials like feed, thereby enhancing competitiveness and reducing unit costs [1]