Nissin to buy into Snow Brand unit

Snow Brand Milk Products Co. said Wednesday it will sell part of its interest in distribution unit Yukijirushi Access Inc. to Nissin Food Products Co.

Nissin Food will acquire an equity stake of 1.5 percent in Yukijirushi Access for 581.64 million yen. The deal will take place on Nov. 26, according to Snow Brand Milk, a scandal-tainted manufacturer of dairy products.

Although the sale will see Snow Brand Milk's stake in Yukijirushi Access reduced from 27.72 percent to 26.22 percent, it will remain the firm's top shareholder.

Snow Brand Milk is set to book an extraordinary profit of 540 million yen from the sale.

This has already been factored into the company's earnings forecast.

Snow Brand Milk has already sold part of its stake in Yukijirushi Access to companies that include Kirin Brewery Co. and Asahi Breweries Ltd.

Snow Brand Milk eventually hopes to reduce its stake in the subsidiary to levels below 20 percent, company officials said.