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Highlights:
- Fonterra announced divestment of its Soprole business to Gloria Foods for a consideration of approximately NZ$1.055 billion.
- The divestment process began in April 2022 after the company announced its strategy for 2023.
- The company expects to satisfy all conditions related to divestment in coming six months.
ASX-listed dairy company, Fonterra Shareholders’ Fund (ASX:FSF) is to divest its Chilean Soprole business as it intends to focus on its New Zealand milk business. According to ASX filing, the divestment would take place through several transactions for an aggregate consideration of NZ$1.055 billion.
About the divestment of Soprole business
Miles Hurrell, CEO, Fonterra, stated that the divestment process began in April 2022 after the group launched its strategy for 2023. Hurrell added,
Fonterra said that the divestment is subject to numerous conditions like receipt of regulatory approvals and commencement of an irrevocable public offer process for the outstanding shares in Soprole, which Fonterra does not own. The company anticipates that all conditions will be satisfied in approximately six months.
The company will share an update regarding the impact of the divestment program through FY23 financial reporting.
About Gloria Foods
Gloria foods is a consumer dairy company that operates across Uruguay, Colombia, Argentina, Puerto Rico, and Bolivia. Gloria Foods and Fonterra have a commercial relationship in South America.