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Danone said on Sunday it was taking a first step towards selling off its stake in its Chinese dairy partner as the French food group faces pressure from shareholders to improve its performance and. | March 6, 2021
Danone prepares to sell US$1bn stake in Mengniu
Bloomberg
Danone SA is paving the way to sell its stake in China Mengniu Dairy Co (中國蒙牛乳業) later this year by converting the investment into a direct holding.
The 9.8 percent stake is held indirectly and has a book value of 850 million euros (US$1.03 billion), the world’s largest yogurt maker said in a statement on Sunday.
The majority of the proceeds would be returned to shareholders through a share buyback program.
Danone SA chief executive officer Emmanuel Faber poses ahead of a press conference in Paris on Feb. 16, 2018. The French company plans to sell its stake in China Mengniu Dairy Co later this year by converting the investment into a direct holding.
Under shareholder pressure, Danone seeks to sell Chinese asset
A cow in a Chinese dairy farm. Photo: Bloomberg
March 1, 2021
Danone said on Sunday it was taking a first step towards selling off its stake in its Chinese dairy partner as the French food group faces pressure from shareholders to improve its performance and governance.
Danone said in a statement that following a review of its portfolio it had reached an agreement to convert its indirect stake in China Mengniu Dairy Company Limited into a 9.8% direct holding in the Hong Kong-listed group.
A sale of the direct stake could follow this year in one or in several transactions and depending on market conditions, Danone said, adding that most of the gains would be used to buy back its own shares.
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