China Modern Dairy Holdings Ltd. has indicated its intention to acquire all issued shares of China Shengmu Organic Milk Limited that it does not already own or has agreed to acquire, through a possible cash offer to be made by CLSA Limited on its behalf. The offer is conditional upon the completion of certain share purchase agreements, which are subject to specified conditions precedent. An independent board committee has been established and an independent financial adviser appointed to advise on the matter. Further developments will depend on the fulfillment or waiver of these conditions.