China Mengniu Dairy, one of the mainland companies caught up in last year’s toxic milk scandal, is to receive a $790m investment to help transform its operations.

The Hong Kong-listed company announced on Monday that it would raise HK$6.1bn ($790m) from the equal sale of existing and new shares to a consortium comprising China National Oils, Foodstuffs and Cereals Corp (Cofco) and Hopu Investment Management.