French packaged food and meat producer Danone agreed to acquire a 49% stake in Yashili New Zealand Dairy Co. Ltd., an indirect subsidiary of Yashili International Holdings Ltd.
Singapore-based Danone Asia Pacific Holdings Pte. Ltd. and Yashili International Group Ltd., a Hong Kong-incorporated unit of Yashili International Holdings, signed a memorandum of understanding June 11 for the transaction. The consideration and payment schedule will be determined after talks, Yashili International Holdings said in a statement.
Yashili International Holdings said May 23 that it was considering a disposal of a noncontrolling interest in certain factory assets to a connected person of the company. Danone Asia Baby Nutrition Pte. Ltd., an indirect wholly owned unit of Danone, has a 25.0% stake in Yashili International Holdings.
The transaction is subject to regulatory approvals, including consent of the New Zealand Overseas Investment Office, and approval by the shareholders of Yashili International Holdings, among other conditions.