PARIS (Reuters) – Danone said on Sunday that it was taking the first step towards selling its interest in its Chinese dairy partner as the French food group is under pressure from shippers. sections to improve its performance and management.
Danone said in a statement that, after examining their portfolio, they reached an agreement to convert its indirect liability in China Mengniu Dairy Company Limited into a direct holding of just 9.8% in the group listed therein. and Hong Kong.
The sale of the money could just follow this year in one or several transactions and depending on the market situation, Danone said, adding that most of the profits would be used to buy back his own shares.
The French group said the indirect share currently has a book value of around 850 million euros ($ 1.03 billion) and added 57 million euros to its revenue in 2019.
“Today’s news is an example of our commitment to delivering portfolio optimization and yield to shareholders through controlled capital allocation,” Chief Financial Officer Juergen Esser said in an emailed statement .
Chairman and CEO Emmanuel Faber has been under increasing pressure recently as shareholders push for changes at the group, which has weakened some competitors during a pandemic. COVID-19 release.
U.S. investor Artisan Partners joined BlueBell Capital Partners on Friday to persuade Danone to find a new CEO to improve its regulatory practices and accelerate efforts to drive returns. They have called for the post of Director and chair to be divided into two separate roles.
French media reported that Danone’s board of directors was to meet on Monday to discuss regulatory issues.
($ 1 = 0.8282 euros)
Reciting with Leigh Thomas; Edited by Susan Fenton