Fonterra Co-operative Group has sold its nine per cent shareholding in Bega Cheese Limited, two years after purchasing it, for $74 million.
“We are on focused on investing in higher value add dairy products that deliver the best returns for our shareholders. Releasing capital such as through this sale, for future growth is the best use of our shareholders’ funds,” Fonterra CFO, Lukas Paravicini, said.
The company said the sale of Fonterra’s shareholding has no implications for its “long standing relationship” with Bega, with includes a license of the Bega brand and a supply contract for cheese.
“The Bega brand has an important role in our cheese portfolio where we are a market leader, and we will continue to build our relationship with Bega which goes back more than a decade,” Paravicini said.
It comes as Fonterra also announces the appointment of Clinton Dines as an independent director.
Dines will take up the board position at the next Annual Meeting on November 25, when Sir Ralph Norris steps down.
