- China dairy importer Jatenergy will shed five per cent ownership from its latest purchase in the infant milk formula market
- Back in August, the company moved to buy 70 per cent in producer Australian Natural Milk Association, a deal worth $14 million in cash and shares
- The deal pocketed Jatenergy a 5000 square metre Melbourne milk powder facility and control of 1 of 15 approved infant formula exporters
- Today, the company announced it will shed its ownership to 65 per cent, trading it to business partners Yanxia Lu and Yinghan He for $1 million in cash
- Shares in Jatenergy are trading up by 1.96 per cent today for 5.2 cents each
Jatenergy has pocketed some cash after shedding five per cent from a majority shareholding in its latest dairy purchase.
The Chinese-Australia supply chain specialist moved to control a 70 per cent shareholding in Australian Natural Milk Association (ANMA) back in August.
The purchase cost $12 million in cash and an additional $2 million in shares (36,490,596 options).
The purchase put Jatenergy, once again, as a top-dog in dairy business for China: putting a 5000 square metre Melbourne milk powder facility under its thumb.
The purchase also adds yet another massive stakeholding in the milk formula industry to its portfolio, as ANMA is only 1 of 15 approved exporters in the infant formula industry.
Today, however, the company announced it will shed five per cent in ANMA which will see a board shuffle.
ANMA’s facility will continue to produce one of Jatenergy’s pre-existing milk formula brands, Nuerio.
Jatenergy owns Nuerio through its 51 per cent owned subsidiary, Sunnya. Sunnya shareholders Yanxia Lu and Yinghan He, who jointly-own 49 per cent in the company, will pay $1 million in cash to buy 5 per cent in ANMA.
“We are delighted that our Sunnya will take an ownership interest in ANMA,” Jatenergy CEO Wilton Yao said.
“It demonstrates their confidence in Jatenergy’s strategy of acquiring our own manufacturing plant where the Neurio products will be manufactured.”
Jatenergy will then shed its five per cent to hold 65 per cent in ANMA. Remaining vendor’s of ANMA will own 30 per cent, with Yanxia and Yinghan holding five per cent in the company.
Yanxia Lu will also be joining the board of ANMA.
“We are also delighted to have [Yanxia] Lu become a director of ANMA where she can make a very significant contribution to the ongoing development of the ANMA business,” Wilton added.
Shares in Jatenergy are trading higher today, at a premium of 1.96 per cent for 5.2 cents each.