Danone sells €1.6 billion stake in China Mengniu Dairy
- 20 May 2021
- 1251
Most of the proceeds will be returned to shareholders though a share buyback program
French dairy giant Danone finalized the strategic sale of its 9.8% stake in China Mengniu Dairy Co. Ltd. via an accelerated bookbuilding process. The transaction was settled on May 17, resulting in total gross proceeds of HK$ 15.4 billion (approximately €1.6 billion).
According to Danone, the majority of the proceeds will be returned to shareholders through a share buyback program.
The transaction follows Danone’s announcement on February 28, 2021, revealing the company’s intention to convert its long-term indirect stake in China Mengniu Dairy into a direct holding, which was completed on April 16, 2021.
