China Modern Dairy Holdings' (HKG:1117) cash offer for China Shengmu Organic Milk (HKG:1432) closed on Aug. 3, with valid acceptances for about 4.38 billion shares, raising its interest in the company to 83.52%.
China Shengmu's public float will fall to about 12.87% after completion of the share transfers, according to a joint filing with the Hong Kong stock exchange on Monday. This is below Hong Kong's 25% minimum requirement. China Modern Dairy said it will take steps to restore the required public float as soon as possible.