Fonterra looks at options

by | Sep 29, 2021 | Australia, News

Fonterra is examining ownership options for its Australian business, flagging a possible IPO with Fonterra retaining a significant stake. According to Fonterra chief executive Miles Hurrell the local business was “on strategy and remained important to the co-op”. However access to ongoing external capital would best place the business to deliver on its strategy and realise its full potential while unlocking capital for the co-op. Speaking to Kiwi shareholder Hurrell had a different emphasis on the importance of Australia as an export market for New Zealand foodservice and ingredient products. Freeing up capital from the Australian and Chilean businesses would allow greater focus on innovation and sustainability, creating extra value from NZ milk.

Fonterra Australia managing director René Dedoncker hopes Australian investors including local suppliers and staff have the opportunity of investing in the local business. Dedoncker said Fonterra would not consider splitting the high-performing consumer business from the less profitable ingredients and manufacturing arm, a strategic partnership and private equity were also under consideration.