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Sanyuan wins bidding of Sanlu with 616.5m yuan

By Tu Lei (chinadaily.com.cn)
Updated: 2009-03-04 11:21

A woman looks at a carton of Sanyuan milk in a supermarket in Beijing, June 1, 2008. [Asianewsphoto]

Beijing Sanyuan Food Co Ltd today won the bidding of Sanlu's assets with 616.50 million yuan ($90.13 million).

Sanyuan has reportedly pooled funds of 800 million yuan to 1 billion yuan through selling non-public shares to its parent company, Sanyuan Group, and its largest shareholder, Beijing Enterprises (Food) Co Ltd, to prepare for the bidding.

Sanlu, a Chinese dairy company at the center of the melamine scandal, was declared bankrupt by a court in its north China base of Shijiazhuang, capital of Hebei province, in February.

Its real estate holdings, buildings and equipment are auctioned today, along with its investment rights and interests in three other dairy firms.