France's Danone may raise stake in Japan's Yakult - Kyodo
TOKYO (Reuters) - French Food company Danone SA (DANO.PA) may raise its stake in Japanese drink maker Yakult Honsha (2267.T) to 28 percent from 20 percent and has asked the company to put a Danone official in a senior managing position, Kyodo News reported on Saturday
Danone, already the biggest shareholder, is in talks with the Japanese company about gaining a bigger stake. Discussions have been hampered by concern at Yakult that doing so would give the French firm too much influence over company decisions, Kyodo said, citing an unidentified source.
Danone, which first invested in Yakult in 2000, may launch a tender offer bid to acquire up to 35 percent of Yakult if talks fail to reach agreement, giving it a controlling stake in the company by allowing it to veto board decisions, Kyodo said.
At the current market value of Yakult, known in Japan for its fermented lactic drinks, increasing its stake 8 percent by acquiring existing stock would cost Danone $475 million (294 million pounds).
(Reporting by Tim Kelly; Editing by Ron Popeski)
- Tweet this
- Share this
- Digg this