French dairy giant Danone has revealed it is to sell its remaining stake in Japanese probiotics drink firm Yakult.
In an announcement this morning (6 October), Danone said it would be shedding its 6.61% shareholding in Yakult via an “accelerated bookbuilding process”.
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Danone said the decision to sell up was in “accordance with its continued focus on capital allocation discipline and balance sheet strength”, almost the same reason it gave in February 2018 when the dairy firm announced it was reducing its 21.29% stake in Yakult to just under 7%.
Danone’s collaboration with Yakult began in 2004 but the French company stressed today the relationship has not come to an end.
“Following today’s announcement, the companies reconfirm their commitment to the long-term strategic collaboration to promote probiotics. Existing commercial partnerships, including joint ventures in India and Vietnam remain in place,” it said.
The Activia and Actimel brands owner said it will make a further announcement related to the proceeds received from the sale “in due time”.
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By GlobalDataCommenting on today’s announcement, Martin Deboo, an analyst at Jefferies, said: “We see this as a positive and shareholder-friendly move by Danone.”
