China Modern Dairy Says Conditions for Shengmu Takeover Offer Still Unsatisfied

China Shengmu Organic Milk Ltd ( (HK:1432) ) has issued an update.

China Modern Dairy Holdings Ltd has provided a monthly update on its possible mandatory conditional cash offer, to be made via CLSA, for all issued shares of China Shengmu Organic Milk Limited not already owned by Modern Dairy and its concert party Start Great. The company confirmed that completion of the underlying share purchase agreements, which is subject to multiple conditions precedent, remains outstanding, with no conditions yet satisfied or waived, although preparation of the shareholder circular and regulatory filings is under way and the circular is expected to be dispatched by 31 December 2025. The offer will only proceed if these share purchase agreements complete, meaning the transaction – which could significantly increase Modern Dairy’s control over Shengmu and further consolidate China’s dairy sector – may or may not occur, and both companies are urging shareholders and potential investors to exercise caution when trading their shares pending further announcements.

The most recent analyst rating on (HK:1432) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Shengmu Organic Milk Ltd stock, see the HK:1432 Stock Forecast page.

More about China Shengmu Organic Milk Ltd

China Shengmu Organic Milk Limited is a Hong Kong–listed dairy producer incorporated in the Cayman Islands and focused on organic milk products, while China Modern Dairy Holdings Ltd, also Cayman-incorporated and Hong Kong–listed, operates large-scale dairy farming and milk production in China. Both companies are active in China’s dairy sector, with Modern Dairy pursuing strategic control of Shengmu through an equity acquisition that could consolidate their positions in the market.

Average Trading Volume: 10,665,051

Technical Sentiment Signal: Buy

Current Market Cap: HK$2.85B

Learn more about 1432 stock on TipRanks’ Stock Analysis page.