Yashili International Holdings' IPO performed below expectations, raising $348 million vs. $458 million. The shortfall continued after the public offering, as shares dropped 12% on the Hong Kong exchange.
Yashili performed like the tainted milk it once sold. The Carlyle Group invested in Yashili during the toxic ingredient scandal.
Carlyle owned 853.6 million shares in Yashili as of Oct. 20, according to data compiled by Bloomberg.The problem was systemic in China, given 22 dairies sold toxic milk, sickening 300,000 children and killing six infants. Is Yashili's Hong Kong rejection due to poisonous ingredients or its toxic PEU partner?