Danone to raise assets

Danone plans a private asset increase in order to reduce its debt and increase its financial flexibility. According to the company's chief executive officer Emmanuel Faber the transaction will take place in a few days.

The goal of the transaction is to reduce the debt, which increased after Danone bought the Royal Numico baby food manufactury for 12.3 billion euros in 2007. There was not any example in the last 22 years that the company carried out a private asset increase. The shares issued at a discount price, dilutes the profits per share with about 10 percent. The transaction creates additional opportunities for growth – reports Portfolio.hu.