On 30 January 2019, Sappe Holding Limited, Thailand’s top women functional drink maker, has entered into a partnership with Myen Pte Ltd (or “Danone”) a 100% subsidiary of Danone SA to co-invest into a joint venture company (the “JV Company”) which will develop, manufacture, market and distribute healthy hydration beverages in Thailand.
SAPPE Holding will hold a 25% equity stake in the JV Company, acquired using its internal cashflow as a source of funds, while the other 75% will be held by Danone. Total planned investment into the JV Company is estimated to be approximately 300 million Thai Baht, which will be injected in three rounds over a period of two years. Operations are expected to begin in the first quarter of 2019. The JV Company will become SAPPE’s indirect associate.