Danone to Sell 22.7% Lifeway Foods Stake in $67.4M Offering
Danone is selling its 22.7% stake in Lifeway Foods via a public offering of 3,454,756 shares at $19.50 each, expected to close May 19. Lifeway will repurchase up to $5m of those shares at the same price, with Danone receiving all offering proceeds.
1. Danone Announces Stake Sale
Danone has entered into an agreement to sell its entire 22.7% holding in Lifeway Foods through a secondary underwritten public offering of 3,454,756 shares at $19.50 each. The offering is set to close on May 19, and all net proceeds will go to Danone.
2. Lifeway's Share Repurchase Plan
Lifeway Foods will not receive proceeds from the sale but has agreed to repurchase approximately $5 million of shares at $19.50 each, conditional on the successful closing of Danone’s offering. The buyback is intended to support the stock and signal confidence in the company’s outlook.
3. Background on Danone–Lifeway Relationship
Danone first invested in Lifeway in 1999 and pursued takeover offers priced at $25 and $27 per share in 2024, both of which were declined. Tensions escalated with legal actions over executive equity awards, culminating in a board refresh agreement and cooperation pact earlier this year.