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Sanyuan, Wondersun to buy 8 Sanlu plants

(Agencies)
Updated: 2008-11-04 17:24

Beijing Sanyuan Group and Heilongjiang Wondersun Dairy Co Ltd have won the right to buy eight plants of Sanlu Group, the dairy firm at the center of the milk contamination scandal.

Sanyuan Group will buy seven plants, while Wondersun will acquire an eighth, the report said.

The eight plants are the Sanlu's core assets, the report said, with disposal plans for 20 other facilities not yet determined.

Beijing Sanyuan Group will fund its purchases with bank loans, the report said.

Beijing Sanyuan Foods Co Ltd, the group's listed arm, may issue new shares later on to acquire these assets from the parent company, it added.

Shares of listed Beijing Sanyuan Foods have been suspended from trading since Sept 26 pending an announcement relating to an acquisition of Sanlu Group assets.