SINGAPORE - A group of investors led by Singapore's sovereign wealth fund GIC and private equity firm Olympus Capital Asia has injected US$106 million (S$132 million) into Huaxia Dairy Farm, a milk producer headquartered in Sanhe, China.
The capital will be used to fund the expansion of the company's farming operations and its retail dairy products business, GIC said in a statement on Wednesday.
GIC will invest US$70 million in this round of financing while Olympus Capital Asia will put in US$30 million. Other existing Huaxia Dairy shareholders, including venture capital private equity fund Grand River Capital, will make up the balance US$6 million.
This round of investment will bring Olympus' total investment in Huaxia Dairy to US$108 million, making Olympus the company's largest shareholder.
Huaxia Dairy was set up in 2004 and currently operates three farms with over 13,500 cows. The company is currently building a fourth farm in Xinghua, Jiangsu, which will help it better serve the Beijing and Shanghai markets.
"We are excited to be an investor in Huaxia Dairy, a leading dairy farming company focused on the premium dairy market in China. As a long-term value investor, we are confident in the growth prospects of the company," said GIC Special Investments senior vice president Chin Kiong Goh.
Huaxia Dairy's founder and chairman Charles Shao said: "This financing marks another key milestone for Huaxia Dairy and will provide the capital to support our growth plans. We appreciate the continued support and partnership with Olympus Capital Asia and welcome GIC as a new investor."