Dairy Farm splashes $190m on shares in China's Yonghui Superstores

Dairy Farm International confirmed it has invested a further $190m in Yonghui Superstores in order to keep its share of the Chinese supermarket chain as it completed a new round of fundraising.

London-listed and Bermuda-registered Dairy Farm bought 287m shares to maintain its stake in Yonghui at 19.99% as the Shanghai-listed company sold JD.com a 10% interest and its chairman Zhang Xuansong bought a 2% interest.

The number of shares acquired was adjusted from Yonghui's initial announcement over the weekend, to take account of a bonus issue of shares made in June 2016.

Yonghui is based in Fuzhou, Fujian province in mainland China and operates 412 retail outlets across the People's Republic.

Dairy Farm is a leading pan-Asian retailer and a member of the Jardine Matheson Group.