ARC Capital sells Xiajin Dairy stake in $30m deal

ARC Capital Holdings, an investment firm, has sold its entire shareholding in Ningxia Xiajin Dairy to investment holding company Prospect Link for $30m in cash.

Established in 1992, Wuzhong, China-based Xiajin Dairy is engaged in the manufacture and distribution of dairy products in Ningxia province; it is the largest regional dairy product enterprise in the province with extensive access to high-quality local raw milk resources.

The company offers products including fresh milk, reconstituted milk, yogurt, flavoured milk beverages, fruit yoghurt drinks, and milk powder.

Subject to certain conditions, the transaction is expected to be completed by the end of the month.

The sale price is approximately 1.7 times ARC Capital Holdings’ initial investment cost of $18.1m and 0.8 times the carrying value for the investment as of 30 September 2013.

The company said that in due course it will distribute proceeds from the sale to shareholders.

ARC Capital Holdings, which is managed by ARC Capital Partners, specialises in late stage, emerging growth, buy-outs, consolidation, pre-IPO private equity investments, and mezzanine securities investments.