Temasek, Singapore's state-owned investment company, has teamed up with China-focused private equity firm Hopu and three private investors to acquire $213m worth stake in infant milk formula producer Yashili International.
The shares will be purchased from China Mengniu Dairy through investment vehicles. Mengniu is selling its stake to comply with Hong Kong listing requirements.
As per the terms of the agreement, Temasek and partners will buy 471.13 million shares of Yashili for HK$3.50 each.
Following completion of the deal, Temasek and Hopu will own 6.2% and 5% respective stakes in Yashili, while Mengniu's stake will drop to 76.6%.
In June, Mengniu offered $1.6bn for all of Yashili; however, it received offers for 89.82% stock falling just short of a 90%, avoiding it to make a compulsory acquisition of the remaining shares.