Kommersant: Danone may sell part of its assets in Russia

The French company Danone is ready to transfer control over a part of Russian assets to potential investors, subject to the inclusion of a buyback option in the transaction, writes “Kommersant”.

According to sources familiar with the discussion of the sale, Danone wants to retain a stake in the board of directors of the Russian company after the deal, investors are offered 75% of the assets. In this case, we are talking only about the Russian brands of the company, for example, Prostokvashino and Rastishka.

Dmitry Gabyshev, managing director of Peregrine Capital, said that the inclusion of a buyback option in the deal could seriously limit the circle of potential buyers, according to the publication, several unnamed investment funds showed interest in the assets. The company itself did not comment on this topic.

Danone announced about plans to abandon its business in Russia in mid-October. Control of the dairy and plant products division will be transferred to a new owner. The company explained that they believe this solution is the best option to ensure long-term local business continuity for employees, consumers and partners.

In early March, Danone announced the suspension of investment projects in Russia. The decision will not affect the production and distribution of food products, Danone noted at the time. The company also donated 500,000 euros to the International Red Cross for humanitarian aid to Ukraine. On March 23, Danone announced that it would continue to produce dairy products and baby food in Russia, but was ending all other ties with the country.

Danone is one of the world’s largest manufacturers of dairy products and other food products. The company has been operating in more than 140 countries around the world, in the Russian Federation since 1992. In Russia, the company manufactures products under the brands Danone, Danissimo, Prostokvashino, Activia, Actimel, Bio Balance, Rastishka, Aktual, “Smeshariki”, “Theme”, etc. The Danone Russia group includes 19 factories, which employ more than 100,000 employees.