Danone: Portfolio review: Conversion of Danone’s 9.8% indirect
stake in Chinese partner Mengniu into a direct holding as a first
step to disposal
Press release – Paris, February 28, 2021
Portfolio review
Conversion of Danone’s 9.8% indirect
stake in Chinese partner Mengniu into a direct holding as a first
step to disposal
As part of its ongoing portfolio review, Danone
announces it has reached an agreement with COFCO Dairy Investments
Limited (“CDI”), to convert Danone’s stake in China Mengniu Dairy
Company Limited (“Mengniu”), currently held indirectly, into a
direct holding. Listed on the Hong Kong Stock Exchange with a
current market capitalization of approximately €18 billion(1),
Mengniu is a leading Chinese manufacturing and distribution company
of dairy products, in which Danone first became a shareholder in
2013. This conversion is the first step towards facilitating
Danone’s disposal of its stake in Mengniu.
This conversion process remains subject to
regulatory approval and once completed, will result in Danone
owning a direct 9.8% stake in Mengniu. A divestiture of Danone’s
stake in Mengniu could then follow in 2021 through one or several
transactions, depending on market conditions.
Danone’s indirect stake in Mengniu’s share
capital currently represents a book value of approximately €850
million and had in 2019 a contribution to recurring income from
associates of €57m.
Subject to completion, and in line with the
Danone’s disciplined capital allocation, the majority of the
expected proceeds will be returned to shareholders through a share
buyback program.
Beyond this transaction, China remains highly
strategic for Danone. The company has a strong commitment to the
country through its several categories, operations and
employees.
(1) Based on market data and
exchange rates as of February 26, 2021
o o O o o
FORWARD-LOOKING STATEMENTS
This press release contains certain
forward-looking statements concerning Danone. In some cases, you
can identify these forward-looking statements by forward-looking
words, such as “estimate”, “expect”, “anticipate”, “project”,
“plan”, “intend”, “objective”, “believe”, “forecast”, “guidance”,
“foresee”, “likely”, “may”, “should”, “goal”, “target”, “might”,
“will”, “could”, “predict”, “continue”, “convinced” and
“confident,” the negative or plural of these words and other
comparable terminology. Forward looking statements in this document
include, but are not limited to, predictions of future activities,
operations, direction, performance and results of Danone.
Although Danone believes its expectations are
based on reasonable assumptions, these forward-looking statements
are subject to numerous risks and uncertainties, which could cause
actual results to differ materially from those anticipated in these
forward-looking statements. For a detailed description of these
risks and uncertainties, please refer to the “Risk Factor” section
of Danone’s Universal Registration Document (the current version of
which is available on www.danone.com).
Subject to regulatory requirements, Danone does
not undertake to publicly update or revise any of these
forward-looking statements. This document does not constitute an
offer to sell, or a solicitation of an offer to buy Danone
securities.
About Danone
(www.danone.com)
Danone is a leading multi-local food and
beverage company building on health-focused and fast-growing
categories in 3 businesses: Essential Dairy & Plant-Based
products, Waters and Specialized Nutrition. With its ‘One Planet.
One Health’ frame of action, which considers the health of people
and the planet as intimately interconnected, Danone aims to inspire
healthier and more sustainable eating and drinking practices. To
accelerate this food revolution and create superior, sustainable,
profitable value for all its stakeholders, Danone has defined nine
2030 Goals, and paved the way as the first listed company to adopt
the “Entreprise à Mission” status in France. With a purpose to
bring health through food to as many people as possible, and
corresponding social, societal and environmental objectives set out
in its articles of association, Danone commits to operating in an
efficient, responsible and inclusive manner, in line with the
Sustainable Development Goals (SDGs) of the United Nations. By
2025, Danone aims to become one of the first multinational
companies to obtain B Corp™ certification. With more than 100,000
employees, and products sold in over 120 markets, Danone generated
€23.6 billion in sales in 2020. Danone’s portfolio includes leading
international brands (Actimel, Activia, Alpro, Aptamil, Danette,
Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, among others)
as well as strong local and regional brands (including AQUA,
Blédina, Bonafont, Cow & Gate, Horizon Organic, Mizone, Oikos,
Prostokvashino, Silk, Vega). Listed on Euronext Paris and present
on the OTCQX market via an ADR (American Depositary Receipt)
program, Danone is a component stock of leading sustainability
indexes including the ones managed by Vigeo Eiris and
Sustainalytics, as well as the Ethibel Sustainability Index, the
MSCI ESG Indexes, the FTSE4Good Index Series, Bloomberg Gender
Equality Index, and the Access to Nutrition Index.
Danone (EU:BN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Danone (EU:BN)
Historical Stock Chart
From Sep 2023 to Sep 2024