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Danone ups dairy stake

Danone Asia, a subsidiary of French food giant Group Danone, paid the Shanghai government RMB 121.03 million (US$14.59 million) for a 3.58% stake in Bright Dairy & Food.

Shanghai State-owned Assets Operation sold Bright Dairy’s stake at 86% higher than Bright Dairy’s net asset per share, according to the company’s third-quarter financial report. The deal increased Danone’s holdings in Shanghai-listed Bright Dairy to 7.7%.

The government, which owns the majority of listed companies’ stocks in China, said it wants to sell shares worth RMB 2.6 trillion to non-state-owned companies.

Danone, the world’s largest fresh dairy products and packaged water producer, is also the largest partner with China’s two leading beverage makers – Hangzhou Wahaha Group and Guangdong Robust Group.

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