The Singaporean agri-food company Japfa, has announced the sale of 25% stake of AustAsia Investment Holding to the Japan-based group Meiji, for US$ 254.4 million.
Dedicated to the production of milk, yoghurt, ice cream and confectionery, Meiji business has been registered a steady expansion due to the growing demand for chilled milk and the rise of health-conscious consumers.
AustAsia is a dairy farming business, operating seven farms in China with approximately 80.000 cows, being the major supplier of raw milk to the dairy business of Meiji.
This acquisition follows the plan of the Japanese group to expand its business in the Chinese dairy industry while allowing Japfa to liquidate a $253 million term loan facility, improving its financial situation.
Tan Yong Nang, Chief Executive Officer of Japfa, said: “This…partnership will secure the supply of quality raw milk for Meiji’s downstream operations and provide a stable revenue stream for Japfa”.