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Danone Purchase 49% Equity in Yashily New Zealand

  •   24 Dec 2018
  •    Yilia Ye
  •   355  Views
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    Takehome:

    • Danone’s purchase of 49% equity in Yashily New Zealand offers strategic advantages to both enterprise.  

    According to a Yashily announcement issued on Dec. 15, 2018, Yashily (Hong Kong) will sell a 49% stake in its Yashily New Zealand Dairy Enterprises to Danone Asia Pacific Holding. The transaction is valued at 157.6 million NZD.

    Yashily (Hong Kong) and Danone Asia now hold 51% and 49% stakes in Yashily New Zealand dairy enterprises. The amount of board members should not exceed 5, and Danone can have a maximum of 2 seats.

    For Yashily they will now be able to increase their production capacity which should have a significant impact on profitability. Danone benefits from increased traction in the New Zealand milk powder market and better access to milk powder resources in New Zealand. This recent deal is the latest in list of strategic partnerships between the two enterprises:

    As the major overseas investment made by Yashily, Yashily New Zealand dairy enterprises was established in 2013, and boasts a maximum annual output of 52 thousand tons of infant formula milk powder. Currently it has 6 registered infant formulae in China. In terms of after tax profits, Yashily lost 20 million NZD in 2016, lost 877 thousand NZD in 2017 and earned 3.5 million NZD in H1 2018

    Reference link

    Acquisition announcement
     

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