Xinhua Xinhua August 17 Sequoia 63 million U.S. dollars capital injection last weekDairy news occupied the site of Chinas major headlines in the Financial category, caused widespread concern in the industry, various experts and scholars also have comment, almost all of that is a gamble, some directed at an agreement on gambling is the unequal treaties, will constitute a pressure on the operation of. The fact that the case
Dairy Nie, general manager of broadcasting in an interview with reporters said that the agreement does not exist unequal, gambling, not to mention, also Sequoiaaccepted after careful consideration, because, since the melamine incident later, including Sequoia, including several top global investment bank has been in hot pursuit. Sequoia has its unique advantages, they have been tracking Chinas dairy industry for nearly two years, but insistedchoice, let us take this in itself was very moved. Investment in their current situation, investment in various sectors are leading enterprises. Their future goals is to establish a giant of the field. Sequoia is moved by our this point. Of course, any investment is to profit, naturally there will be some protective measure, which is very normal.
day before yesterday, the number one dairydark officially announced that Sequoia Capital to the targeted 2.1 million additional ordinary shares in the introduction of 63 million U.S. dollars investment. Upon completion of the investment, Sequoia Capital will receive a 10.5% Dairyshares. Considered to be unequal, the agreement also provides that: Ifdairy industry in 2009 by the year 2010 earnings per share target is not completed (three U.S. dollars in earnings / shares next year to reach 4.43 U.S. dollars / share), will be to the red Sequoia Capital re-issuance of up to more than 52.5 million shares; financing agreement from the meeting after the third year of implementation of 15 trading days, if the outstanding shares of Dairyaverage closing price per share less than 39 U.S. dollars, Sequoia Capital will be entitled to seek dairyall this part of the redemption of shares; in 2009 if the 2010 agreement the company reached profitability goals, the original will be able to repurchase the subscription price; If you do not achieve the profit goal, then buy-back price must be the original subscription price of 130%. In addition, dairyare also committed
cultured pearls to the implementation of this transaction in about 3 years, the company will no longer be below 30 U.S. dollars per share price of the stock sale. At the same time, Sequoiahave the right to presence of a director on behalf of the Board of Directors.
Nie broadcast the view that both sides have full confidence in the co-operation, this confidence comes from both sides on the future earnings per shareconfidence, so not a gamble, and tactics will not lead to distortions in the operation. The company has completed the first half of this revenue 1.9 U.S. dollars per share, the year is 3 U.S. dollars to achieve certainty. As for the third year of post-shares, You think about the current international financial crisis so deepdairy stock is more than 30 U.S. dollars, 3 years after the financial crisis has passed, the worlds booming economy willis great the development of U.S. shares 40,50 we have confidence.
a can not ignore the fact thatmelamine milk powder incident in the case of testing with no melamine was not by chance. 47-year historymilk dairy manufacturers has been focusing on basic skills in particular the construction of milk collection building, occupies its own ranch feeding cows with the best in China - 47 degrees north latitude belt, red-crowned cranes in wetland habitat areas, land resources in the world and one of the three of Songliao plains, and its consistently high-quality products. Melamine incident, in many domestic and foreign enterprises in milk, milk powder salesonly a blowout, the growth rate far ahead of the industry as a whole (including foreign brands) are the highest single month or even year-on-year growth of up to 600%. Of course, this is one of the reasons, in addition to Sanlu melamine incident, such as attack by domestic brands to give up market share, that is, a number of foreign milk powder brands in the minds of Chinese consumers went down the noble altar.
Some analysts pointed out that Sequoia Capital is the capital forces in the field of dairy industry after two years of silence Nuggets shot alone, which funds care and Honokiol food left with them in different, and therefore it tens of millions of dollars of investment in the meaning of is greater than the funds themselves. The dairy industry analyst, said Liu in Shanghai in recent months and Sequoia Honokiol two funds into the dairy industry on the impact of changes in industry structure will be enormous.
broadcast NIE pointed out, however, entirely on their ownstrength has been completed from the Nasdaq to the New York Stock Exchange listed arca plate, and then to June 8 this year, the official motherboard NYSE landing of the triple jump of the capital market to accept an injection Sequoia International Dairyjust across the development of large-scale move. NYSE data published by the United States shows that dairyin June 8 this year, has officially transferred to the Main Board of the New York Stock Exchange trading, which exports to more than 40 countries and regionsdairy industry in the international securities markets financing will have a significant impact. Dairylow-key did not even have to be such a major thing to do publicity.
According to the briefing,dairy dairy industry in China in order to forward-looking, low-key style, robust alleged. Chinas dairy industry as the only U.S. company listed on the Main Board, Dairythe first to achieve the power of capital to build a Chinese dairy milk industrys most complete industrial chain, including pasture, dairy farming, packaging production base, the worlds most advanced the introduction of production equipment and so on. As early as the melamine incident,already have two very large dairy industry in Europe and the United States into an international model ranch operations, is planning to spend billions of dollars in 5 years to build 10 similar pastures. At present, dairyin latitude 47 degrees with the construction of 10 large international demonstration farm has been completed nearly one-third of the remaining grazing land will be completed in 4 years, because the protection of the funds has been raised Dairyfunds will be invested in Qiqihar ecosystem surrounding areas and the original eco-ranch, continue to expand its ecological ranch in the leading-edge construction. By then,dairy industry will no doubt be a well-deserved milk collection of the best suppliers in China. Industry experts said. % A% A