Spain: 33.34 % stake in Spanish brewer Mahou will be sold by Groupe Danone SA
Groupe Danone SA announced on May 25 it sell its 33.34 % stake in Spanish brewer Mahou to the company's other shareholders for about EUR 600 million after taxes, completing Danone's exit from the brewing business. The transaction will take effect at the end of 2005, Danone said.
With reported sales of circa EUR 800 million in 2004, Mahou has a leadership position on the Spanish beer market with flagship brands including San Miguel and Mahou. This withdrawal puts an end to Groupe DANONE's presence in brewing activities.
The first stage of this disengagement took place in 2000, when Groupe DANONE combined its brewing assets in France and in Belgium with the brewing business of the UK group Scottish & Newcastle.
At the same time, Groupe DANONE had sold its 69% stake in the Spanish brewer San Miguel to its associate Mahou, of which Groupe DANONE owned one third of the share capital, and its 24% stake in Birra Peroni Spa to the Peroni family.
In reaction to the news, CA Cheuvreux maintained its 'outperform' rating on the shares and 82 eur price target. The broker noted Danone expects the exit to be EPS dilutive by 1 pct in 2006, and would be EPS accretive in case of buy back, according to AFX News. 'We already assume 500 mln eur buyback per annum. This disposal gives more flexibility to achieve this goal,' Cheuvreux argued.
Oddo Pinatton reiterated its 'buy' stance on the group and 88 eur valuation. The broker also said it believes that following the disposal, Danone will, in the absence of acquisition opportunities, use the cash to pursue its share buyback programme in 2006.
Shares in Groupe Danone SA rose in morning deals as the market cheered news the group is to exit from the ailing beer business, dealers said. By 09.30 am, shares in Danone were 0.7 eur or 0.94 pct better at 75.45.
Wstecz
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