Danone: sells entire stake in Britannia to Wadia Group

Mumbai / IN. (div) French Groupe Danone SA will exit Britannia Industries Ltd. of Wadia Group by selling its entire stake to the Mauritius-based investment firm Leila Lands Ltd., which holds 25 percent stake in India’s leading biscuit maker firm. In a regulatory filing to the Bombay Stock Exchange Leila Lands said it would buy 25,48 percent of the stake (6,09 million shares) in Britannia, held by Danone´s UK-based Associated Biscuits International (ABI) Ltd., April 14. «Post-acquisition, our stake in Britannia will double to 50,96 percent from 25,48 percent», Leila Lands said in the filing. Leila Lands is a subsidiary of Bombay Burmah Trading Corporation (BBTC), a group company of the Mumbai-based Wadias. The 41,76-billion-Rupees (INR) Wadia group and Danone hold equal stakes in ABI Holdings. «The inter-se transfer price, however, will not exceed by 25 percent of the price determined in terms of applicable regulations», the investment said to BSE. The deal will settle a two-year dispute over the control of the company and snap a 15-year association between the two dairy and beverage partners. It will also end their long-drawn battle over the intellectual property rights (IPR) of Britannia´s flagship biscuit brand «Tiger». Britannia posted a sales turnover of 25,84 billion INR (2’584 INR crore) in fiscal 2008.