HONG KONG Nov 1 Asia buyout firm Olympus
Capital is leading an investor group that has injected $50
million to expand China's Huaxia Dairy Farm Ltd, a company that
produces the raw milk that is in short supply in China's growing
dairy sector, Huaxia said on Thursday.
Foreign investors have been positioning themselves as safer
alternatives in China's dairy sector after a lethal baby formula
scandal four years ago, but need raw milk to make premium
This is the second Olympus-led injection into Huaxia. Last
year the firm led a group including European dairy firm Mueller
Milch Management that invested $45 million for a minority stake.
Olympus invested $38 million in the latest financing,
bringing its total investment in Huaxia to $68 million. Other
investors include California Technology Ventures, Herostar
Holdings and Grand River Capital.
Earlier this year Danish-Swedish dairy group Arla Foods Amba
, said it would buy a 6 percent stake in China Mengniu
Dairy Co from private equity firm Hopu for 1.7 billion
Danish crowns ($289 million).
Huaxia Dairy said it is completing two new farms and
expanding its Wondermilk gelato and yogurt stores in Beijing
with five stores planned to be open by the end of the year.
(Reporting by Stephen Aldred)