Ausnutria (1717.HK) Welcomes Center Laboratories and Bioengine to Become Substantial Shareholders of Ausnutria

HONG KONG, Nov. 12, 2014 /PRNewswire/ -- Ausnutria Dairy Corporation Ltd ("Ausnutria" or the "Company", together with its subsidiaries, the "Group"; stock code: 1717.HK) a paediatric milk formula company with its production facilities principally based in the PRC as well as in the Netherlands, announces today that a Taiwan listed company, Center Laboratories, Inc. ("Center Lab"; stock code: 4123.TT) and Bioengine Capital Inc. ("Bioengine"), a non-wholly-owned subsidiary of Center Lab, have conditionally agreed to purchase approximately 25.84% of the issued share capital of Ausnutria (the "Shares"), at a total consideration of approximately HKD765.08 million, equivalent to HKD3.00 per Share, which represents a premium of 12.36% over the closing price of the Shares of HKD2.67 on Monday.

Based in Taipei City, Taiwan, Center Lab was founded in 1959 and listed on the GreTai Securities Market in Taiwan since 2003. Center Lab has extensive experience in manufacturing and selling pharmaceutical products primarily in Taiwan who offers a range of liquid oral drug products to infants, children, elderly, and special care patients. It also carries out research and produce raw materials and high-end functional probiotic powder which are applied in food, healthcare and pharmaceutical products. Bioengine engages in investment, biotechnology, research and development as well as intellectual property activities.

Upon the completion of the Shares transfer, the original founding team of the Company will be holding approximately 33.10% of the Shares and remain as the major shareholder of the Company.

Mr. Lin Rongjin, the Chairman and Director of Center Lab said, "Ausnutria is one of the very few players in the industry in this region that owned a complete industrial chain ranging from the research and development, milk collection, processing, production, packaging in the Netherlands, where it is well known to produce the best quality of milk. In the past few years, Ausnutria maintained supply partnerships with other leading international manufacturers of infant formula, and impressed the market by building a number of infant formula products such as Allnutria, Hyproca 1897, Puredo, etc. into leading infant formula nutritious brands and Kabrita into a leading goat milk infant formula brand in China, through an innovative business model and its newly established marketing and sales network in Europe, North America, Middle East, particularly, the PRC, where products of Ausnutria have achieved tremendous penetration and considered to be the fastest growing market on infant food in the world. We strongly believe that Ausnutria can benefit from the fast-growing global dairy industry, particularly in the PRC due to the growing demand driven by the relaxation of the one-child policy as well as the increase of household income in the PRC. Through the cooperation with Ausnutria, Center Lab can participate in the great potential dairy industry and contribute to human-beings by providing healthy, high quality and nutritious dairy products."

Mr. Yan Weibin, Chairman of the Company said, "We are pleased to have Center Lab and Bioengine to become our substantial shareholders. The transaction is based on the overall strategy of the Company's comprehensive development. I believe that with the invaluable experience of Center Lab in strict control on quality and food safety, Ausnutria can enjoy the synergy, provide outstanding products with more quality assurance to customers, enrich the Company's product line, enhance the Company's governance structure and regulatory experience, as well as strengthen the implementation of internationalized strategies and will continue to strive for the highest returns and value to the Shareholders in the long run."

About Ausnutria Dairy Corporation Ltd

Ausnutria Dairy Corporation Ltd is a leading paediatric milk formula company with its production facilities principally based in China and the Netherlands and engaged in the dairy industry with activities ranging from the research and development, milk collection, processing, production, packaging in the Netherlands and marketing and sales of dairy products to the PRC, Europe, North America, Middle East and other overseas countries. For the six months ended 31 June 2014, revenue of Ausnutria amounted to approximately RMB937 million, representing an increase of approximately 17.5% compared to the same period in 2013. Ausnutria's factory in the PRC was among one of the first batch of factories in the PRC that succeeded in obtaining the renewed production license and the three factories in the Netherlands were among one of the 41 worldwide manufacturers that succeeded in being approved as the first batch of registered overseas dairy products producers that were granted the registrations for exporting their products to the PRC under the New Policies.

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