Danone's Yakult sale points to a healthier future

Yakult Honsha

14/02/2018 10:30

(The author is a Reuters Breakingviews columnist.  The opinions 
expressed are her own.) 
    By Carol Ryan 
    LONDON, Feb 14 (Reuters Breakingviews) - The dairy giant is 
selling most of its stake in Japan's Yakult and will rake in 
roughly 1.4 billion euros. The value of the investment that it 
made in 2003 has nearly quadrupled. The proceeds will help the 
company meet its debt-reduction goal. The capital discipline is 
welcome.  
     
    Full view will be published shortly. 
    On Twitter https://twitter.com/Breakingviews 
     
    CONTEXT NEWS 
    - French dairy group Danone said on Feb. 14 that it plans to 
sell part of its 21.3 percent stake in Japanese probiotic drinks 
maker Yakult. 
    - The sale could raise around 1.4 billion euros based on 
Yakult's current market capitalisation. Danone plans to retain a 
7 percent stake in Yakult after the transaction, which is 
scheduled to be completed in March.  
    - The two companies have had a formal collaboration since 
2004.   
    - Danone's shares were up 1.1 percent to 64.57 euros by 0938 
GMT on Feb. 14.  
    - For previous columns by the author, Reuters customers can 
click on  RYAN/  
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Food group Danone to sell 14 percent stake in Japan's Yakult    
 urn:newsml:reuters.com:*:nL8N1Q41HB 
Danone statement    http://danone-danonecom-prod.s3.amazonaws.com/COMMUNIQUES_DE_PRESSE/Danone_PR_140218.pdf 
BREAKINGVIEWS-Danone's chair-CEO blend leaves sour taste    
 urn:newsml:reuters.com:*:nL2N1MT1F1 
BREAKINGVIEWS-Danone has to work to milk turnaround tale    
 urn:newsml:reuters.com:*:nL8N1MS1IL 
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> 
 (Editing by Swaha Pattanaik and Bob Cervi) 
 ((carol.ryan@thomsonreuters.com; Reuters Messaging: 
carol.ryan.thomsonreuters.com@reuters.net)) 
 
Keywords: DANONE YAKULT/BREAKINGVIEWS