Danone has successfully completed its EUR3bn (US$4.2bn) rights issue, which was over-subscribed by 182%, with demand for the offering totalling around EUR5.5bn.

In an announcement this morning (23 June), Danone said 121m new shares were subscribed based on irrevocable rights, representing 98.2% of the newly issued shares. Demand for excess shares by rights holders amounted to 102.8m new shares, of which only 2.2m could be allocated.

The proceeds of the rights issue will be used “principally for the reduction of Danone’s net financial debt”, the company said.

The French dairy group indicated that the capital would enable it to strengthen its capital structure, reduce its financial leverage and improve its credit metrics.

Danone also emphasised that the injection of funds would increase financial and strategic flexibility, with a view to support its organic growth model and finance potential add-on acquisitions.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Yesterday, Argentine dairy La Serenisima admitted it has held talks with Danone over a possible new business venture between the two companies. 

The two companies have worked together since 1996, with Danone marketing La Serenisima’s yoghurts and desserts brands.