CITIC Agri Fund Management Co Ltd is to buy a 25.18 percent stake in China’s Ausnutria Dairy Corporation Ltd for HK$1.96 billion (US$250 million), becoming the company’s largest shareholder. CITIC Agri Fund will buy 249 million new shares from dairy products supplier Ausnutria Dairy for HK$1.29 billion (US$1.64 million).

CITIC Agricultural Industry Fund Management Co. Ltd. offers investment services; the company invests in the real estate industry, individual private property, stock industry, and other related industries.

A statement from Ausnutria Dairy Corporation reads: The Subscription Shares represents 19.82 percent of the total number of issued Shares as at the date of this announcement, and 16.54 percent of the total number of issued Shares as enlarged by the issue and allotment of the Subscription Shares.”

“The gross proceeds of the Subscription will be HK$1,289,820,000. The net proceeds of the Subscription, after deduction of the related expenses, will be HK$1,288,820,000, representing a net price of HK$5.176 per Subscription Share.”

“The company intends to apply the majority of the net proceeds for the repayment of bank loans and future investments.”

Following the announcement, shares of Ausnutria increased by more than 6 percent to HK$6.93, an all-time high since 2009, but shares have since gone to HK$6.64.