Shang Hai Zheng Quan Bao·2026-01-16 18:56Core Viewpoint - Inner Mongolia Yili Industrial Group Co., Ltd. is participating in a share placement and subscription of new shares in China Youran Dairy Group Co., Ltd. through its wholly-owned subsidiary, aiming to enhance its supply chain efficiency and secure high-quality milk sources for better development in the dairy processing business [1][6]. Group 1: Transaction Overview - The company, through its subsidiary Boyuan Investment Holdings Ltd., holds a 33.93% stake in Youran Dairy. It will sell 299,250,000 shares at HKD 3.92 per share and simultaneously subscribe for the same number of new shares at the same price [1][2]. - The total subscription amount for the new shares is HKD 1,173,060,000 [3]. Group 2: Approval Process - The transaction was approved by the company's board of directors on January 14, 2026, with unanimous support, and does not require shareholder approval as it falls within the board's authority [3][4]. Group 3: Pricing Basis - The pricing for the sale and subscription was based on the latest market price of Youran Dairy prior to the agreement and was determined through fair negotiations between the parties involved [4]. Group 4: Financial Arrangements - Funding for the transaction will come from various sources, including potential capital increases from the company to Boyuan Investment and self-raised funds by Boyuan Investment [5]. Group 5: Impact on the Company - The transaction is strategically significant as it allows the company to secure high-quality milk sources and enhance its competitive position in the dairy industry, aligning with its long-term development goals [6].