Feihe International, Inc. Announces Agreement to Sell Dairy Farms for $131.8M

Feihe International, Inc. ADY today announced that it has entered into an Equity Purchase Agreement with Haerbin City Ruixinda Investment Company Ltd. Pursuant to the Agreement, the Company agreed to sell to the Purchaser all of its equity interests of Heilongjiang Feihe Kedong Feedlots Co., Limited and Heilongjiang Feihe Gannan Feedlots Co., Limited for an aggregate purchase price of approximately US$131.8 million, comprised of approximately US$17.8 million in cash and six equal quarterly deliveries of raw milk in an aggregate value of approximately US$114.0 million. Until the Purchaser has met its milk delivery obligations to the Company, the Purchaser must exclusively supply raw milk to the Company and thereafter must prioritize any Company requirements for extra raw milk. The Company will specify the feeding forage and feeding method and the quality of raw milk that the Purchaser provides. The exclusive supply period for the Company will be an unlimited time period.