France’s Danone, whose Russian assets were transferred to temporary management by the Federal Property Management Agency, will sell its business in Russia to Tatarstan’s Vamin company. The Financial Times reports this.
Vamin is reportedly willing to pay 17.7 billion rubles ($191.5 million) to take control of Danone’s Russian business. Of this amount, 7.7 billion rubles will be used to pay off the debt of the Russian business, the rest will be used to pay off Danone’s stake in the company.
The transaction price is a 56% discount on the market value of the business. In order not to disrupt the work of its former Russian business, Danone agreed to provide support to the company until the end of July next year. Danone did not comment on this matter.
Danone has written down more than €700 million of its Russian operations following its transfer to the control of the Federal Property Management Agency, and also wrote down the value by an additional €500 million in July last year as a result of the fall in the ruble.
- On July 16, 2023, the President of the Russian Federation signed a decree on the transfer of Danone’s Russian business (Danone Russia JSC) to the Federal Property Management Agency under temporary management. Deputy Chairman of the Government of the Chechen Republic Yakub Zakriev was appointed general director of the company. It has been under US sanctions since November 2023.
- Since September 20, Danone Russia JSC operates as H&N JSC (H&N, Health and Nutrition), Danone Trade operates as H&N Trade.
- Vamin Tatarstan LLC, according to information published on the company’s website, is engaged in the production of finished dairy products and raw materials for the production of meat, confectionery, feed and ice cream.
Author:
Anastasia Marina
Source: RB
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