Chinese infant formula maker Beingmate Baby & Child Food had its shares halted on the Shenzhen stock exchange ahead of an asset sale to a related party in the next week and a half.
The infant formula maker, which counts New Zealand’s Fonterra Cooperative Group as a cornerstone shareholder, sought the trading halt yesterday. It expects to make an announcement in the next 10 days, according to a translation of a Chinese-language notice to the stock exchange.
Beingmate slashed its annual earnings guidance this year, prompting Fonterra to reassure stakeholders that the long-term outlook for its Chinese partner remained strong and the company was an important part of its strategy in the world’s most-populous nation.
Fonterra bought an 18.8 percent stake in Beingmate in March 2015, paying 18 yuan per share. That price has fallen to 11.97 yuan before yesterday’s suspension.