Investing.com - French food maker Danone (PA:DANO) purchased 49% of Yashili New Zealand Dairy, an indirect wholly-owned subsidiary of Hong Kong-listed Yashili International Holdings, for about NZ$318 million.
The purchase price also includes 49% of the "Closing Date Total Comprehensive Profit Amount” and 51% of the "Forfeited Tax Loss Amount,” according to Yashili’s statement filed after the market closed on Friday, although the company did not provide further details on these terms.
Mengniu's (HK:2319) shares rose 0.41% to HK$24.6, and Yashili's (HK:1230) shares remained flat on Monday morning in Asia on the news.
The sale could “strengthen its strategic partnership with Danone and achieve greater synergies.” Yashili said it plans to spend the $107.13 million net proceeds from the sales on “brand building.”
Danone had signed a memorandum of understanding back in June for the acquisition.
After the acquisition, Yashili will own 51% of the shares of Yashili New Zealand, while Danone will own the remaining 49%.