China Modern Dairy Holdings Ltd. (SEHK:1117) announced that it has entered into a subscription agreement with new investor New Hope Dairy Co., Ltd. (SZSE:002946) for private placement of 276,228,409 common shares at a price of HKD 1.3535 per share for gross proceeds of HKD 373,875,151.58 on July 18, 2019. The investor will acquire 4.31% stake in the enlarged capital of the company and own 9.2846% stake upon closing of acquisition and subscription transactions. The shares will be issued at premium to nominal value of HKD 27,622,840.90.

The company will receive net proceeds of HKD 373,790,000 after deducting expenses incurred in the transaction. The investor can nominate a person to the company's board of directors upon closing. The shares issued are subject to lock-up period of 12 months from closing.

The transaction is subject to approval of stock exchange, shareholders of the investor and company, various regulatory authorities including China Development and Reform Commission, the Foreign Exchange Administration, the Ministry of Commerce and or the State Foreign Exchange Administration of the People's Republic of China. The transaction has been approved by the board of directors of the company and 15th meeting of 1st directorate of the investor. The transaction will complete on 5th business day following the date on which all the conditions have been satisfied or October 31, 2019.