Bright Food (Group) Co has agreed to buy 30 percent stake in Shanghai-listed unit Bright Dairy and Food Co for 1.55 billion yuan (US$227 million).

The food giant will buy 314 million shares of Shanghai Bright Dairy at 4.93 yuan each from S.I. Food Products Holdings Ltd, the second-largest shareholder of the Shanghai-listed unit. S.I. Food sold the stake because it wants to focus on its core business.

The equity transfer will make Shanghai Bright Dairy become a wholly owned unit of Bright Food, which already holds a further 35 percent shareholding through its subsidiary Shanghai Dairy Group.

(Shanghai Daily July 31, 2009)