The firm, which bought a 34.5 per cent stake in the company for $150m in 2008, has now sold its last 168 million shares according to Reuters, which cited a source with direct knowledge of the matter.
China Modern Dairy floated in 2010, with KKR reducing its stake to 24 per cent at the time.
Reuters previously reported that KKR was set to recoup three-times its initial investment in China Modern.
China Modern has the largest herd size and raw milk production of any dairy company in China.
In the six months ending 31 December 2013 the group’s operating results reached a historical high due to increases in productivity and the increased demand for high-end dairy products in the country.
Last month pan-Asian private equity firm Olympus Capital and Singapore’s sovereign wealth fund GIC provided $106m to Chinese milk producer Huaxia Dairy Farm to develop its retail and farming operations.
Olympus and GIC agreed to invest $30m and $70m, respectively, with the rest expected to come from other stakeholders.
Copyright © 2014 AltAssets