Sanlu bid boosts Sanyuan shares
Although many Chinese dairy producers had shown a keen interest in acquiring the assets of the now-defunct Sanlu Dairy, the Beijing-based Sanyuan looks certain to claim it all.
Sanyuan shares, which had been suspended from trading since Sept 26 following reports that it planned to buy Sanlu, resumed its trek on the bourses from Feb 16. Its share price soared to the 10-percent daily limit on two consecutive days, and closed at 7.45 yuan yesterday.
"At a time when numerous domestic producers, especially brands such as Mengniu and Yili, are struggling to regain consumer confidence, investors are pinning their hopes on Sanyuan to reinvigorate the Chinese dairy industry and prevent it from being taken over by the international players," said Huang Wei, a food and beverage analyst at China Jianyin Investment Securities.
