China Modern Dairy Holdings Ltd. (CMD, Stock Code: 1117) and China Shengmu Organic Milk Limited (CSM, Stock Code: 1432) jointly provided a monthly update regarding the possible mandatory conditional cash offer. The offer, proposed by CLSA Limited on behalf of CMD, aims to acquire all issued CSM shares not already owned or agreed to be acquired by CMD and Start Great Holdings Limited.

According to the announcement, completion of the Share Purchase Agreements (SPA) must occur before the offer can proceed. Various conditions precedent must be satisfied or, where applicable, waived by the Long Stop Date. To date, approval from CMD’s independent shareholders has been obtained at the CMD Extraordinary General Meeting on 16 January 2026. The conditions outlined in paragraphs (d) and (e) of the Rule 3.5 Announcement remain under consideration, and no other conditions precedent have been satisfied or waived at this stage.

Further developments will be announced in accordance with applicable regulations. Both CMD and CSM highlight that there is no certainty the SPA completion will occur or that the offer will ultimately be made. Shareholders and potential investors are advised to exercise caution when trading the shares of either company.