Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Danone cleared to indirectly hold up to 65% of Yashili NZ

Danone cleared to indirectly hold up to 65% of Yashili NZ

By Rebecca Howard

June 4 (BusinessDesk) - Danone SA can indirectly hold up to 65 percent of Yashili New Zealand Dairy Co after its Danone Asia Pacific unit got a green light from the Overseas Investment Office to purchase up to 49 percent of the local dairy processor.

"The applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character. The applicant has also demonstrated financial commitment to the investment," the OIO said in a statement.

Yashili NZ operates a $220 million dairy factory in Pokeno, Waikato that is capable of producing 52,000 tonnes of infant formula a year.

Prior to the additional purchase, Danone indirectly owned 30 percent of Yashili New Zealand through its quarter-stake in the parent, Yashili International Group.

No amount was disclosed by the OIO. However, Yashili International Group’s annual report showed the transaction was broken into two tranches. The first is for the US dollar equivalent of 49 percent of NZ$315 million.

The second tranche is the sum of the US dollar equivalent of 49 percent of NZ$2.9 million, plus the US dollar equivalent of 49 percent of the closing date total comprehensive profit amount and the US dollar equivalent of 51 percent of the forfeited tax loss amount.

Upon completion of the deal, Yashili International will hold 51 percent of the issued share capital in Yashili New Zealand, and Yashili New Zealand will continue to be a subsidiary of the company.

Yashili International Group is 51 percent owned by Mengniu Dairy.

(BusinessDesk)



© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Up 17.% In June Year: Fuel And Rent Drive Inflation

The consumers price index (CPI) rose 0.6 percent in the June 2019 quarter, due to higher prices for petrol and rent, Stats NZ said today. More>>

ALSO:

Services: Softer June Points To Economic Slowdown

Activity in New Zealand's services sector softened in June, adding to a picture of lacklustre economic growth. The BNZ-BusinessNZ performance of services index fell 0.8 of a point in June from May to a seasonally adjusted 52.7. More>>

ALSO:

Incomings: Migration Remains High

Annual net migration was provisionally estimated at 50,200 (± 800) in the year ended December 2018 compared with 52,600 in the previous year, Stats NZ said. More>>

ALSO:

BusinessDesk: ComCom Files High Court Proceedings Against Westpac

The commission alleges the bank breached the Credit Contracts and Consumer Finance Act 2003 by failing to provide key information it was required to give customers under the law. More>>