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.