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Danone to finally exit Britannia

Source: PTI
April 06, 2009 19:33 IST
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After fighting for over four years, Groupe Danone and the Wadias have struck a deal that will see the French food giant exit their biscuit joint venture, Britannia Industries Ltd.

Groupe Danone will be selling off its indirect stake of 25.48 per cent held in BIL to a Wadia Group company, Leila Lands, through an inter se share transfer (among the promoters), expected to take place on April 14.

In a notification to the stock exchanges, Leila Lands said it will acquire 100 per cent in Britannia Brands Ltd, which holds an indirect stake of 25.48 per cent in BIL, from Danone Asia Pte Ltd.

Subsequently, Leila Lands will hold 50.96 per cent stake in BIL. The share transfer price would be finalised not exceeding 25 per cent of the price determined as per the regulatory practice, it said.

Danone and Wadias hold equal stake in Britannia Industries through their joint ownership of Associated Biscuits International Holdings, UK, which is a 50 per cent subsidiary of Britannia Brands Ltd.

The French firm's wholly-owned subsidiary, Danone Asia Pte, has 100 per cent stake in BBL. While the deal brings a clarity to the soured relationship between estranged promoters of Britannia, it however is not clear if they have settled their differences over the intellectual property rights of the 'Tiger' brand.

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