Chinese infant formula manufacturer Beingmate Baby & Child has revealed more details of a strategic partnership with a state-owned investment firm Great Wall Guorong Investment.
The company has confirmed Great Wall will take a 5.09% stake in Beingmate by acquiring 52 million shares previously held by Beingmate's controlling shareholder, Beingmate Group, which is owned by founder Xie Hong.
Great Wall is paying 5.46 yuan per share, representing a small premium to Beingmate's recent share price of 5.25 yuan. The total consideration is 284m yuan ($59.7m).
The acquisition means Beingmate Group's stake will fall from 34.21% to 29.13% and Great Wall's Changhong Fund will replace JVR International as Beingmate's third largest shareholder, behind Fonterra with 18.8 per cent.
JVR is controlled by He Xiaohua, the current vice chairman of Beingmate.