Nestle to sell stake in Givaudan worth $1.27 billion
ZURICH Dec 6 (Reuters) - Nestle has launched the sale of its entire 10 percent stake in Swiss fragrance and flavour maker Givaudan, worth 1.145 billion Swiss francs ($1.27 billion).
In a statement on its website, the world's biggest food group said it plans to sell 926,562 Givaudan shares through an institutional private placement. Goldman Sachs is managing the sale, which has yet to be completed.
The maker of KitKat chocolate bars and Nescafe coffee acquired the stake in 2002 when it sold food ingredient company FIS to Givaudan for a combination of cash and stock.
Nestle is the second biggest shareholder in Givaudan with a 10.03 percent stake according to Thomson Reuters Eikon data.
The sale comes as Nestle looks to shed underperforming businesses. Last month, it sold the bulk of its Jenny Craig weight-loss business to a U.S. private equity firm for an undisclosed sum.
The has been market speculation that Nestle might also part with its 29.5 percent stake in French cosmetics group L'Oreal when restrictions on selling it end in April 2014. ($1 = 0.8982 Swiss francs) (Reporting by Caroline Copley; editing by Patrick Graham)
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