Danone may divest Britannia stake to outsider

Bangalore: Groupe Danone, which holds an equal stake in Indian biscuit major Britannia Industries, says it will sell its 25.5 percent stake in the company only at the "right price", and could consider divesting it to an outside investor if a consensus is not reached with joint venture partner, the Wadia Group.

Rumours have been doing the rounds recently that another prominent Indian corporate house was looking at buying into Britannia, even though the Wadias are against inducting a new investor with aggressive plans.

Last week, Danone indicated plans to exit Britannia as part of a well-thought-out disengagement with the Wadia Group in order to develop an independent India strategy.

Sources said Danone will first offer shares to the Wadias, given their over-a decade-old ties, but will sell its interest "only at a certain price" and could consider offloading to an outside investor depending on the progress of its talks with the Wadias.

Both the Wadias and its French partner declined to comment on specific queries regarding shareholder agreement on share transaction and the right of first refusal.

The Wadias and Danone together own 51 per cent stake in Britannia through holding company Associated Biscuits International Holding (ABIH). Danone has refused to indicate the price on its stake, which is expected to come up in course of its future discussions with the Wadias.

The French major says it is willing to vacate the biscuit space and sign a no-compete clause with the Wadias if it exits Britannia.