Fonterra has reached an agreement to divest its minority stake in Lithuanian dairy business Rokiškio Sūris as part of its strategic review of investments in the food and beverage industry. In 2017, Fonterra acquired a 10% stake in Rokiškio Sūris for NZ$11.7m (then $8.5m).
The New Zealand-based dairy cooperative will sell its 3.59 million shares in Rokiškio Sūris for €2.2 ($2.34) per share, totaling around €7.9m. The sale will take place through the Vilnius Stock Exchange, with the buyback scheduled for the coming month.
Despite the sale, Fonterra and Rokiškio Sūris will continue their cooperation in milk processing and product trade on mutually agreed terms. Rokiškio Sūris, headquartered in Panevėžys, specializes in producing cheese, butter, whey protein, and milk powders. The company also operates factories in Latvia.
In line with its 2030 strategy course, Fonterra has decided to divest country-specific assets, including its stake in Rokiškio Sūris. The company aims to focus on enhancing its operations within the food and drink consumer trends market.
Furthermore, Fonterra has appointed Anna Palairet as its permanent chief operating officer. Palairet brings extensive experience in operational, customer, sustainability, and sales roles, having previously held senior leadership positions at Air New Zealand. CEO Miles Hurrell expressed confidence in Palairet’s leadership and looks forward to her continued contribution to the Fonterra management team.
In other news, Fonterra announced its plans to merge its New Zealand and Australia business units to establish Fonterra Oceania on 1 May. This integration is expected to strengthen the company’s trans-Tasman offering in the competitive food and beverage industry landscape.
As Fonterra continues to streamline its operations and focus on key market opportunities, the company remains committed to driving growth and innovation within the food and drink business sector.
