Danone to sell stake in Huiyuan
By Dominique Vidalon |
July 29, 2010, Thursday
|
Print Edition
Print Edition
DANONE is selling its 22.98 percent stake in Chinese fruit juice company Huiyuan Juice Group for about 200 million euros (US$258 million) to Hong Kong-based private-equity group SAIF partners.
The sale is in line with the French food group's strategy to focus its water division on natural mineral and spring water-based beverages, it said yesterday.
Danone is selling its stake for HK$6 per share, or a 10 percent premium on its Tuesday closing price of HK$5.43.
Coca-Cola Co had proposed a US$2.4 billion all cash bid for Huiyuan in what would have been the largest-ever foreign takeover of a Chinese company, but the deal collapsed in 2009 after China ruled that the proposed transaction would have been bad for industry competition.
"Danone wanted to sell its stake since the aborted Coca-Cola takeover. The Coca-Cola offer valued Danone's stake at 460 million euros," Oddo analyst Pierre Tegner said.
"This is good news that the French company found a buyer even if it is two times less than what it would have obtained from Coca-Cola."
Danone operates 20 factories and employs 9,000 people in China across its four divisions - fresh dairy products, waters, baby nutrition and medical nutrition.
"Danone will continue to focus on the growth opportunities of its four categories in China," Danone said.
The sale is in line with the French food group's strategy to focus its water division on natural mineral and spring water-based beverages, it said yesterday.
Danone is selling its stake for HK$6 per share, or a 10 percent premium on its Tuesday closing price of HK$5.43.
Coca-Cola Co had proposed a US$2.4 billion all cash bid for Huiyuan in what would have been the largest-ever foreign takeover of a Chinese company, but the deal collapsed in 2009 after China ruled that the proposed transaction would have been bad for industry competition.
"Danone wanted to sell its stake since the aborted Coca-Cola takeover. The Coca-Cola offer valued Danone's stake at 460 million euros," Oddo analyst Pierre Tegner said.
"This is good news that the French company found a buyer even if it is two times less than what it would have obtained from Coca-Cola."
Danone operates 20 factories and employs 9,000 people in China across its four divisions - fresh dairy products, waters, baby nutrition and medical nutrition.
"Danone will continue to focus on the growth opportunities of its four categories in China," Danone said.
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