China Youran Dairy (HKG:9858) units Inner Mongolia Youran Dairy and Inner Mongolia Saikexing Reproductive Biotechnology (Group) entered into a non-legally binding letter of intent for asset swap transactions.
Under the letter of intent, Inner Mongolia Saikexing Reproductive Biotechnology will sell 18 fairy farming business units to Inner Mongolia Youran Dairy, according to a Wednesday Hong Kong bourse filing.
The latter will also dispose of two subsidiaries engaged in the production and sale of feeds and ruminant farming products to the former.
The move, which is subject to a formal agreement, comes in order for the two parties to remove overlapping businesses.