Danone Plans to Sell Stake in Chinese Dairy Company Mengniu
March 01 2021 - 1:37AM
Dow Jones News
By Pietro Lombardi
Danone SA said Sunday that it wants to sell its stake in Chinese
dairy company Mengniu Dairy Co. and return most of the funds it
expects to raise to shareholders via a share buyback.
The French food company said that, as a first step toward its
disposal plans, it has reached an agreement with Cofco Dairy
Investments Ltd. to convert its indirect stake in Mengniu into a
direct holding of 9.8%. Mengniu, which manufactures and distributes
dairy products, is listed on the Hong Kong Stock Exchange and has a
market capitalization of around 18 billion euros ($21.73
billion).
Danone said its indirect stake has a book value of about EUR850
million.
Once the conversion is completed, the French company may sell
the holdings this year, in one or more transactions.
Write to Pietro Lombardi at pietro.lombardi@wsj.com;
@pietrolombard10
(END) Dow Jones Newswires
March 01, 2021 01:22 ET (06:22 GMT)
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