US private equity firm KKR has sold its stake in China Modern Dairy for $80m.

The firm sold 168 million shares at HK$3.70 per share.

KKR member Julian Wolhardt was quoted by Reuters as saying: "We are very proud of the partnership we have had with Modern Dairy since 2007 in supporting their efforts to provide safe and healthy drinking milk to Chinese consumers."

China Modern Dairy operates dairy farms and produces raw milk with focus on large-scale industrialised free-stall dairy farming.

China Modern Dairy was bought by KKR and CDH after a 2008 scandal involving chemical-laced products affected the country’s milk industry. KKR bought 34.5% for $150m.

In 2013, KKR and CDH sold 26.9% stake to dairy products maker China Mengniu Dairy for HK$3.18bn ($410m).