Modern Dairy updates on Shengmu Organic Milk acquisition bid

China Modern Dairy Holdings Ltd. (CMD) and China Shengmu Organic Milk Limited (CSM) have issued a joint announcement regarding CMD's possible mandatory conditional cash offer for CSM. CLSA Limited is acting on behalf of CMD to acquire all issued shares of CSM, excluding those already owned or agreed to be acquired by CMD and Start Great Holdings Limited.

The making of the offer remains contingent on the satisfaction or waiver of all conditions precedent outlined in the Rule 3.5 Announcement, which must occur by the Long Stop Date. As of December 19, 2025, none of these conditions precedent under the Share Purchase Agreements have been satisfied or waived.

CMD is actively progressing towards satisfying these conditions, including preparing the CMD Circular, expected to be dispatched by December 31, 2025, and submitting regulatory filings. Shareholders and potential investors are advised that the offer is conditional and may or may not proceed, thus caution is urged when dealing in CMD and CSM shares.