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Danone completes the sale of part of its stake in Yakult for $1.6bn
French dairy giant Danone has announced that it has sold a total of 24.6m shares of Yakult Honsha Co., Ltd., for approximately €1.3bn ($1.6bn), and corresponding to a valuation multiple of 39 times Yakult's 2017 net income.
In line with Danone's capital allocation priorities, proceeds from the transaction will be used to continue its deleveraging path and to invest in accelerating organic growth and maximizing efficiencies towards 2020 for sustainable value creation.
As a result of the transaction, Danone's stake in Yakult's outstanding share capital is reduced from 21.29% to 6.61%.
The investment will continue to be accounted for using the equity method under IFRS.
Danone said it will maintain the long-term partnership with Yakult, and enhance their collaboration activities. Danone remains Yakult's largest shareholder and will nominate two directors for approval at the Annual General Meeting of shareholders.
