Lactalis Increases its Stake in Parmalat to 29%

Group Lactalis will hold a direct and potential shareholding that combined would account for approximately 29% of the share capital of Parmalat S.p.A.

3/23/2011 --- Group Lactalis, Europe's largest dairy group has reached, an agreement with the funds Zenit Asset Management AB, Skagen AS and Mackenzie Financial Corporation for the purchase of all Parmalat shares held by them (equal to 265,744,950 shares representing approximately15.3% of the share capital of Parmalat S.p.A.) at a price of Euro 2.80 per share. The deal is worth around $1 billion.

The exact number of Parmalat shares purchased directly by Group Lactalis and of those purchased by the equity swap counterparties will be released as soon as possible.

Pursuant to the transaction described above, Group Lactalis will hold a direct and potential shareholding that combined would account for approximately 29% of the share capital of Parmalat S.p.A.