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The divestment comes as part of Fonterra’s renewed focus on bolstering its operations in New Zealand as it phases out its overseas milk pools, while reducing debt.
The process to hive off its Chilean operations, Soprole, began in April this year and will be conducted through “a number of transactions” involving sale of shares in a Fonterra holding company, the dairy exporter said.
“Soprole is a very good business but does not rely on New Zealand milk or expertise,” Fonterra Chief Executive Officer Miles Hurrell said.
“We are now at the end of the divestment process and have agreed to sell Soprole to Gloria Foods – JORB S.A. (Gloria Foods).”
The deal is subject to regulatory approvals and commencement of a tender process in Chile for the outstanding shares in Soprole not already owned by Fonterra.
($1 = 921.5000 Chilean pesos)
