Inner Mongolia Yili Industrial Group Co.Ltd(600887) announced on March 3 that as of the deadline of the first offer (4 pm on March 3, 2022), Inner Mongolia Yili Industrial Group Co.Ltd(600887) held or controlled 953 million shares of Aoyou dairy, accounting for 52.70% of the total issued share capital of Aoyou dairy. According to the code on corporate acquisitions and mergers of the SFC of Hong Kong, the time for acceptance of this offer will be extended to 4 p.m. on March 17, 2022.
China Securities News · China Securities Taurus reporter learned from the relevant person in charge of Inner Mongolia Yili Industrial Group Co.Ltd(600887) today that this means that Inner Mongolia Yili Industrial Group Co.Ltd(600887) will soon complete the comprehensive tender offer for Aoyou dairy after becoming the largest shareholder.
comprehensive acquisition will realize complementary advantages
According to public information, Aoyou dairy is the first infant formula milk powder enterprise listed on the Hong Kong stock exchange. The company’s business involves the R & D, production and sales of high-end dairy products and nutritional food all over the world. At present, the company has more than 5000 employees worldwide, of which overseas employees account for more than 20%.
Yili said that the success of the comprehensive acquisition will bring a jump in Yili’s performance and thicken the company’s earnings per share. After financial consolidation, Yili’s performance in various performance indicators is expected to be further optimized.
It is understood that after the full acquisition, the two sides will complement each other in business layout, supply chain and channel construction, and the synergy will be further strengthened.
Yan Weibin, chairman of Aoyou, said that Yili and Aoyou are compatible in mission, vision and values, have similar development strategies, and also have good complementarity in upstream milk source layout, R & D and innovation, supply chain construction, product portfolio, talent training, international development, brand construction and terminal channel development. Aoyou welcomes Yili’s participation and will deeply embrace the era of collaborative innovation after the success of the comprehensive offer.
Ma Zheng, chief researcher of Cinda securities, said that in the past two years, the market share of Yili milk powder business has been increasing from 5.80% in early 2020 to 8% in September 2021, with a rapid upward momentum. After the successful acquisition, the company will cooperate with Aoyou in many aspects, impact the medium and high-end and ultra-high-end infant formula milk powder market respectively through its own brand jinlingguan and relevant brands of Aoyou, strengthen Yili’s breakthrough strategy in the milk powder market, and rewrite the competition pattern of the largest sub category of dairy products.
market share continues to focus on the leading
China’s milk powder market has always been valued by international giants. In recent years, local brands are also rising rapidly. Sheep milk powder has become a star category to promote growth.
At the end of 2015, Aoyou put forward the slogan of “golden decade” and established the corporate vision of “becoming the most trusted formula and nutritional health company in the world”. According to the company’s plan, the “golden decade” of Aoyou dairy is implemented in three stages: 20162018, focusing on infant formula; From 2019 to 2022, it became the representative enterprise of infant formula milk powder and nutrition products; From 2023 to 2025, it will become a leading enterprise in infant formula, nutritional food and nutritional services.
According to Nielsen data, since 2018, the sales of Aoyou formula sheep milk powder has accounted for more than 60% of the total imports of infant formula sheep milk powder in China for many consecutive years, ranking first in the sales of sheep milk powder in the world.
It is worth mentioning that after the promulgation of the new national standard for infant formula in 2021, the domestic milk powder industry has entered a new stage of development. The first batch of infant formula products that meet the new national standard for milk powder have been announced recently. The new national standard has brought “new standards”. Since the second half of 2021, many milk powder brands have “gathered together” to adjust the formula and launched a “formula war”.
According to the analysis of industry insiders, the more precise requirements of the new national standard, coupled with the second registration of milk powder formula, will make the milk powder industry “purified” again, accelerate the M & A and exit among homogeneous small and medium-sized milk powder enterprises, continuously concentrate the market share to the leader and improve the development quality of the industry.
