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PARIS, Could 12 (Reuters) – Danone DANO.PA, underneath stress from funding funds over its returns, will promote a 9.8% stake in China Mengniu Dairy Firm <2319.HK>, the meals group mentioned on Wednesday.
China Mengniu Dairy has an fairness market capitalisation of round 166 billion Hong Kong {dollars} ($21.four billion) that means a sale of Danone’s stake might reap round $2.1 billion, primarily based on newest market costs.
The French firm, whose manufacturers embody Actimel yoghurt and Evian water, mentioned the sale would happen by way of an accelerated bookbuilding course of.
Former Danone boss Emmanuel Faber was abruptly ousted as chairman and CEO earlier this yr following clashes with some board members over technique and calls from activist funds for him to resign over the group’s lackluster returns in contrast with some rivals.
French enterprise paper Les Echos reported this week that Antoine de Saint-Affrique was the frontrunner to be named as Danone’s new CEO. Danone declined to touch upon that report.
($1 = 7.7660 Hong Kong {dollars})
(Reporting by Sudip Kar-Gupta; enhancing by Jason Neely and Carmel Crimmins)
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