Wadias complete buying out Danone from Britannia

Fri. April 17, 2009; Posted: 01:07 AM

Mumbai, Apr 16, 2009 (Asia Pulse Data Source via COMTEX) -- BYBRF | Quote | Chart | News | PowerRating -- The Wadia Group today completed buying out of French food giant Danone from their joint venture, Britannnia Industries.

In a filing to the Bombay Stock Exchange, Bombay Burmah Trading Corp (BBTC), a Wadia Group company, said its subsidiary Leila Lands Ltd (LLL) has acquired 100 per cent stake in Britannia Brand Ltd from Danone Asia.

"This has resulted in LLL's indirect shareholding in Britannia Industries increasing from 24.48 per cent to 50.96 per cent," it said.

The company, however, did not disclose financial details of the transaction.

BIL thus now becomes an indirect arm of BBTC, it added.

This follows an agreement between Groupe Danone and the Wadia Group on Tuesday that marked the end of a 13-year-old relationship in Britannia Industries. They have terminated their existing JVs in India and also resolved their dispute over the intellectual property of Tiger brand of biscuits.

As part of the agreement, Danone sold its 50 per cent interest in ABI Holdings Ltd (held through Britannia Brands Ltd) to Wadia Group. ABI Holdings holds an effective 50.96 per cent interest in BIL.

Share of Britannia Industries ended the day at Rs 1,520 up 0.6 per cent from previous day's close.

Relations between Wadias and Danone had soured when the French firm wanted to pursue its own course in India and acquired stake in Bangalore-based bio-nutrition firm Avesthagen in 2006. The Wadias had objected to the move, while BIL took Danone to the court for violating intellectual property rights of its Tiger brand of biscuit.

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