Fonterra trying to sell Beingmate shares

By Jim Cornall contact

- Last updated on GMT

Under Shenzhen Stock Exchange rules it is only possible to sell up to 1% every 90 days directly on the exchange, or up to 2% in a single block every 90 days. Pic: ©Getty Images/lzf
Under Shenzhen Stock Exchange rules it is only possible to sell up to 1% every 90 days directly on the exchange, or up to 2% in a single block every 90 days. Pic: ©Getty Images/lzf

Related tags: Fonterra, China

New Zealand dairy cooperative Fonterra says it is going to sell a portion of its stake in Beingmate Baby & Child Food Company Ltd, which is currently a shareholding of 18.8%.

Chief executive Miles Hurrell said the move is part of Fonterra’s three-point plan to turn around the business.

“One aspect of this plan was to take stock of our business. As part of this, we have re-evaluated every investment, major asset and partnership to ensure they still meet the co-operative’s needs today,”​ Hurrell said.

“This started with a strategic review of our relationship with Beingmate, which has been disappointing. The first action in this review was bringing the distribution of Anmum in China back in-house under our management. 

“We then ended the Darnum joint venture with Beingmate, bought back Beingmate’s share of our Darnum facility in Australia, and entered into a multi-year agreement for Beingmate to purchase ingredients from us.”

Hurrell said what remains is Fonterra’s shareholding in Beingmate Baby & Child Food Co., which is now viewed as a financial investment only.

“We have talked to a number of parties regarding the potential sale of our entire stake in Beingmate, but so far have been unsuccessful in finding a buyer,”​ He added.

“As a result of this, we are now considering selling part of our holding and, as required by local listing rules, need to pre-announce our intention.”

Subject to demand for the shares, under the Shenzhen Stock Exchange market rules it is only possible to sell up to 1% every 90 days directly on the exchange, or sell up to 2% in a single block every 90 days. Trades greater than 5% can be made to an individual party in an off-market transaction.

“From here, it’s about making pragmatic decisions to get the best outcome for the Co-op from our holding in Beingmate,”​ Hurrell added.

“China will always be one of our most important markets. We’ve got a strong business there and are still very much focused on the areas in China where we can succeed.”

Related news

Show more

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us

Featured Events

View more

Products

View more

Webinars