Yakult plunges after Danone's S$1.8b share sale plan

Zurich

YAKULT Honsha shares fell the most in 19 months after Danone, the world's largest yoghurt maker, announced plans to sell about US$1.8 billion of the Japanese company's stock amid pressure from an activist investor to boost returns.

Yakult will offer as many as 24.6 million shares held by Danone, including over-allotment, in a secondary sale, the Japanese company said. The shares are valued at 195.3 billion yen (S$2.4 billion) based on Yakult's closing price on Wednesday. While the move will cut the French company's stake to about 7 per cent, from the 21 per cent it has held for more than a decade, it will remain Yakult's largest shareholder.