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Danone sells stake in Chinese dairy company Mengniu
A day after announcing the strategic sale of its 9.8% stake in China Mengniu Dairy Company Limited, Danone has finalized the deal.
The transaction resulted in total gross proceeds of HK$15.4bn ($1.93bn). The settlement of the transaction will take place on May 17, 2021.
In line with Danone’s disciplined capital allocation, the majority of the proceeds will be returned to shareholders through a share buyback program. The details of the program will be announced upon initiation.
The transaction follows the announcement on February 28, 2021, of the conversion of Danone’s long-term indirect stake in Mengniu into a direct holding, which completed on April 16, 2021.
A further announcement with regards to the success of the sale and proceeds received will be made by Danone in due course.