China Animal Husbandry Group agreed to acquire 51% stake in Shandong Zhongxin Food Group Co., Ltd. from Beijing New Hope Liuhe Biotechnology Industry Group Co., Ltd., LIUHE Group Co. Ltd. and New Hope Liuhe Co.,Ltd. (SZSE:000876) for CNY 2.7 billion on December 15, 2023. China Animal Husbandry Group entered into equity transfer agreement to acquire 51% stake in Shandong Zhongxin Food Group Co., Ltd. from Beijing New Hope Liuhe Biotechnology Industry Group Co., Ltd., LIUHE Group Co.

Ltd. and New Hope Liuhe Co.,Ltd. (SZSE:000876) for CNY 2.7 billion on December 26, 2023. The consideration consists of CNY 2.7 billion in cash. As part of the consideration, CNY 2.7 billion was paid towards common equity.

The transaction is approved by the authority of counterparty China Animal Husbandry Group and its shareholder China National Agricultural Development Group Co., Ltd. Shandong Zhongxin Food Group reported total assets of CNY 10.5 billion and net assets of CNY 1.6 billion as on August 31, 2023. The transaction was approved by the Board of Directors of New Hope Liuhe Co.,Ltd and China Animal Husbandry Group. The transaction is still needs to pass the concentration review of the State Administration for Market Regulation.

As of January 9, 2024, New Hope Liuhe Co.,Ltd. third extraordinary shareholders? meeting of year 2023 held on December 27, 2023, in which shareholders approved the transaction. CAHG and HSIC have made their respective first payments for their acquisitions.