[28 March/Dairy Reporter]

Danone, a French dairy company, announced they had sold $24.6 million shares of Yakult for approximately $1.6 billion. This corresponds to a valuation multiple of thirty nine times their 2017 net income. Proceeds from the transaction will be used to continue deleveraging and invest in accelerating organic growth and maximising efficiencies in line with Danone’s capital allocation priorities. Danone’s stake in Yakult has fallen from 21.29 percent to 6.61 percent. Danone will maintain their long term partnership with Yakult and remained their largest shareholder. They will nominate two directors for approval at the Annual General Meeting.