Danone to sell 20% stake in China's Bright Dairy
French food giant Danone will sell its 20 per cent stake in Shanghai-based Bright Dairy and Food for $127 million.
By Agencies |
SHANGHAI: French food giant Groupe Danone SA will sell its entire 20.01 per cent stake in Shanghai-based Bright Dairy and Food for 955 million yuan ($127 million), the Chinese company said on Tuesday.
Danone agreed to sell 104.24 million shares in Bright Dairy at 4.85 yuan per share to each of Bright Dairy's parent Shanghai Dairy Group and S.I. Products Holdings Ltd, Bright Dairy said in a statement to the Shanghai Stock Exchange.
The statement did not give out any reasons for the sale. The two companies will also terminate an agreement under which Bright Dairy sold and promoted Danone-branded products and used the French company's technologies, the statement said.
Danone will pay 330 million yuan to Bright Dairy as compensation for marketing and distribution expense for Danone, it added.
The deal is still subject to approval from a shareholder meeting on October 31, the China Securities Regulatory Commission and the Ministry of Commerce.
Danone agreed to sell 104.24 million shares in Bright Dairy at 4.85 yuan per share to each of Bright Dairy's parent Shanghai Dairy Group and S.I. Products Holdings Ltd, Bright Dairy said in a statement to the Shanghai Stock Exchange.
The statement did not give out any reasons for the sale. The two companies will also terminate an agreement under which Bright Dairy sold and promoted Danone-branded products and used the French company's technologies, the statement said.
Danone will pay 330 million yuan to Bright Dairy as compensation for marketing and distribution expense for Danone, it added.
The deal is still subject to approval from a shareholder meeting on October 31, the China Securities Regulatory Commission and the Ministry of Commerce.
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