Guangzhou China, June. 27, 2011 – It is reported that Guangxi Royal Dairy Co., Ltd. will purchase 55% share of Dali Laisier Dairy Industry Co., Ltd. to raise funds about USD15.11 million (RMB 97.77 million), which helps Royal Dairy to be the biggest shareowner of Laisier Dairy and is one step for Royal Dairy to expand its business nationwide. Then, Dali Laisier Dairy Industry Co., Ltd. will change its name to Yunnan Royal Laisier Dairy Industry Co., Ltd.
Royal Dairy purchasing 55% stakes from Laisier can help it break Yunnan's dairy market and gradually expand, for Laisier has formed unique sales model, a stable customer base, occupying a certain market share and a big potential in dairy industry in Yunnan. What is more, Yunnan is the second major cities to cultivate buffalo in China, which can help Royal expand its buffalo business nationwide, because buffalo milk is the main and better source of milk. On the other hand, Laisier can improve its management learn from Royal who has standardized management as a launched company and accelerate its development in dairy industry. It is win-win cooperation for them.
Source: CCM International