HONG KONG, May 20 (Reuters) - Shares of China Mengniu Dairy Co Ltd surged 8.6 percent to a 17-month high on Monday after the Chinese dairy products maker said Danone Group would invest in the company and team up in developing yoghurt products in China.
Its shares rose to HK$26.60, their highest since December 2011, outperforming a 1.4 percent gain in the benchmark Hang Seng Index.
Mengniu said on Monday substantial shareholder Farwill Ltd would transfer an 8.3 percent stake in the company to a joint venture involving Danone Group, in a deal worth HK$3.6 billion ($463.74 million).
(Reporting by Donny Kwok; Editing by Paul Tait) Keywords: MENGNIU STOCKS/
(firstname.lastname@example.org)(+852 2843 6470)(Reuters Messaging: email@example.com)
Copyright Thomson Reuters 2013. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.