Sanyuan gears up for Sanlu assets

Beijing Sanyuan Food Co Ltd is fully prepared to take over the assets of the company at the center of last year's melamine scandal, and expects that about 30 percent of Sanlu's sales will be recovered this year, according to Sanyuan executives.

Executive Director Fan Xueshan made the comment after his company's proposal on bidding for assets of Sanlu, through non-public share sale, was widely given a nod among the 14 shareholder representatives yesterday as expected.

But analysts are still worried about the prospects of the transaction, saying the deal is not that appealing given the high price Sanyuan had to pay and the ongoing sluggish dairy market, as well as doubts as to whether Sanyuan will be capable enough to manage Sanlu's assets.