Investment group Eurazeo is to offload its stake in French dairy group Danone ahead of schedule via an early repayment of 700 million euros ($909.7 million) in bonds convertible into Danone stock.
The early conversion of the 2014 bonds comes after a 30 percent rise in Danone’s share price in the last six months.
The move will boost Eurazeo’s pre-tax earnings this year by 131 million euros ($170.24 million), as well as bringing 4.8 million in Danonedividends, the investment group said.
Eurazeo issued the convertible bond in 2009, with global financial marketsstill roiled by the financial crisis. Danone shares have gained some 60 percent since that time.
Once the debt is repaid, Eurazeo will no longer have a stake in Danone for the first time since 1987. ($1 = 0.7695 euros) (Reporting by Lionel Laurent; Editing by James Regan)
Source: Reuters
