Founder Cuts Holdings In Mengniu Dairy

   Date:2011/08/10

August 9 – Niu Gensheng, founder and shareholder of China Mengniu Dairy Company (RCode:2319.HK:), sold 2.28 million shares of the listed company for 64.41 million yuan at 28.25 yuan per share, reports Securities Daily, citing a company filing. The sale leaves Mr. Niu with a 5.66-percent share in the company, down from 5.79 percent.

Some speculate that the asset cut indicates that Niu has lost confidence in the company’s future, while others say Niu wants to help COFCO consolidate its position in the listed company by quitting the listed company himself.

Between 2008 to 2010, Mengniu Dairy’s reputation has been hammered after it was found to have produced milk tainted with melamine, an industrial plastic, as well as OMP and other additives.


 

Source:CapitalVue

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