Shanghai, Jun. 28 - Chinese dairy company Bright Dairy & Food Co. said Wednesday the state assets regulator had approved Shanghai Milk Group selling 44.1 million Bright Dairy shares, or a 4.23% stake, to a unit of France's Groupe Danone.
Although the State-owned Assets Supervision and Administration Commission has now approved the deal, it is still subject to approval from the Ministry of Commerce, the dairy company said in a statement in the official Securities Times.
Danone Asia Pte., which already owns 11.55% of Bright Dairy, plans to buy the 4.23% stake from Shanghai Milk Group for CNY179.04 million, as well as a stake of the same size for the same amount from Shanghai Industrial Food Products Holdings Ltd., Bright Dairy said earlier.
Shanghai Milk Group is a state-owned company and Shanghai Industrial is a wholly owned unit of Hong Kong-listed Shanghai Industrial Holdings Ltd. Each owns 30.78% of Bright Dairy.
Danone's stake purchase from Shanghai Industrial is also pending approval from the Ministry of Commerce, a person at Bright Dairy's board office said Wednesday.
The person, who declined to be named, said it would take a while for Bright Dairy to obtain the Ministry of Commerce approval, but was unable to give a timeframe.
Completion of Danone Asia's stake-purchase plans would raise its ownership of Bright Dairy to 20.01%.
Officials at Danone's media department weren't immediately available to comment.