Danone completes the sale of part of its stake in Yakult for €1.3 billion

Danone announces that, as a successful outcome to the transaction previously communicated on February 14th, 2018, it has sold a total of 24,600,000 shares of Yakult Honsha Co., Ltd. (“Yakult”), for an aggregate amount of JPY175 billion gross proceeds, representing c.€1.3 billion, and corresponding to a valuation multiple of 39 times Yakult’s 2017 net income. In line with Danone’s capital allocation priorities, proceeds from the transaction will be used to continue on its deleveraging path and to invest in accelerating organic growth and maximizing efficiencies towards 2020 for sustainable value creation.
As a result of the transaction, Danone’s stake in Yakult’s outstanding share capital is reduced from 21.29% to 6.61%. The investment will continue to be accounted for using the equity method under IFRS. 
Danone and Yakult will maintain their long-term partnership and enhance their collaboration activities. Danone remains Yakult’s largest shareholder and will nominate two directors for approval at the Annual General Meeting of shareholders.