Danone sold part of its stake in Japanese Yakult

Danone completed the sale of part of its stake in Japanese dairy company Yakult Honsha.

It has sold a total of 24,600,000 shares of Yakult, for an aggregate amount of JPY 175 billion gross proceeds, representing c. EUR 1.3 billion, and corresponding to a valuation multiple of 39 times Yakult’s 2017 net income.

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 and Yakult will maintain their long-term partnership 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.

Earlier it was reported that in 2017 Danone increased its net income by 42.62% to EUR 2.45 billion.

Note: Yakult was founded in 1935. The company, whose products are represented in various countries of the Asia-Pacific region, the United States, Europe and South America, employs more than 2,500 employees. Yakult Honsha Co. is one of the world leaders in the market of products containing probiotics.

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