American Dairy to Sell 2.1 Mln Shares to Sequoia Capital

By staff

(.com.cn) China's American Dairy Inc. (NYSE: ADY), an infant formula producer, said it will sell 2.1 million shares to venture-capital firm Sequoia Capital for US$63 million.

In an online statement on Aug. 12, American Dairy said Sequoia will pay US$47 million in cash and US$16 million in bridge loans.

Beijing-based American Dairy said it might issue more shares to Sequoia if it fails to meet certain earnings targets in 2009 and 2010.