Food group Danone to sell 14 percent stake in Japan's Yakult (updated)

Yakult Honsha

14/02/2018 07:21

* Consumer goods groups under pressure over returns 
    * Yakult stake sale to be settled in March 
    * Danone to keep 7 pct stake in Yakult 
 
 (Adds detail, background) 
    PARIS, Feb 14 (Reuters) - French food group Danone 
 DANO.PA , which is facing investor pressure to boost returns, 
plans to sell a 14 percent stake in Japanese probiotics maker 
Yakult  2267.T , both companies said on Wednesday. 
    The sale of two-thirds of Danone's current Yakult holding 
could fetch about 1.5 billion euros ($1.86 billion), based on 
market prices. 
    Danone, the world's largest yoghurt maker, said the sale 
would be carried out via a market transaction initiated by 
Yakult, which is expected to be settled in March. Yakult also 
announced a 36 billion Japanese yen ($335.76 million) share 
buyback program in which Danone will participate. 
    The French group will retain a 7 percent stake in Yakult. 
    Along with Swiss food group Nestle  NESN.S  and Anglo-Dutch 
consumer goods group Unilever  ULVR.L , Danone has been facing 
investor pressure to boost shareholder returns. 
    Danone has lagged the growth of some rivals, largely due to 
weakness in its European dairy business in the face of sluggish 
demand and private label competition.  urn:newsml:reuters.com:*:nL8N1MS0M1 
    Danone, whose brands include Activia and Actimel yoghurts 
and Evian water, has sometimes been touted as a takeover target. 
    In 2005, the French government stepped in to fend off a 
rumoured bid by Pepsico  PEP.O  by publicly describing Danone's 
business as a protected "strategic" industry. 
    Last year, Danone sold dairy business Stonyfield to Lactalis 
for $875 million after acquiring U.S. organic foods pioneer 
WhiteWave for $12.5 billion.  urn:newsml:reuters.com:*:nL8N1JU1ZB 
    ($1 = 107.2200 yen) 
 
 (Reporting by Sudip Kar-Gupta 
Editing by Laurence Frost) 
 ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84; Reuters 
Messaging: sudip.kargupta.thomsonreuters.com@reuters.net)) 
 
Keywords: DANONE YAKULT/