News: BAL UPDATE 1-China Mengniu Dairy to buy baby formula firm Bellamy's Australia for $983 mln

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Sept 16 (Reuters) - China Mengniu Dairy Company Ltd 2319.HK will buy infant formula maker Bellamy's Australia Ltd (BAL) for A$1.43 billion ($982.98 million), the Australian company said on Monday after its board accepted the Chinese firm's offer.

The A$12.65-per-share deal represents a 52% premium to Bellamy's Friday closing price of A$8.32, excluding a special dividend of $0.60 per share paid by Bellamy’s prior to implementation of the scheme.

Bellamy’s board unanimously recommended that the shareholders vote in favour of the offer.

"It (Mengniu) offers a strong platform for distribution and success in China, and a foundation for growth in the organic dairy and food industry in Australia," Bellamy’s Chief Executive Officer Andrew Cohen said in a statement.

Last month, Bellamy's said its annual profit almost halved as sales dropped 19%, hampered by a Chinese crackdown on imports.

The company, once feted for its China exposure, has faced increasing challenges with new Chinese customs rules for e-commerce purchases crimping informal "daigou" exports and required clearances from health authorities delaying sales from a Bellamy's plant in Australia.

($1 = 1.4548 Australian dollars)