New Zealand dairy firm Fonterra, has agreed to sell off its two joint-venture farms in China to Singapore-based AustAsia Investment Holdings for $115.5 million.
Fonterra has a 51% stake in the business and will receive NZD88 million (US$62.3m) in total asset sale proceeds, including cash on completion.
To Fonterra CEO Miles Hurrell, the sale is another important step for the Co-operative and aligns to its strategy of prioritising New Zealand milk: “The sale of the JV farms allows us to focus even more on our farmer owners’ milk and follows the sale of our two wholly owned China farming hubs earlier this year”.
Mr. Hurrell added: “Greater China continues to be one of our most important strategic markets. We remain committed to our China business, bringing the goodness of New Zealand milk to Chinese customers in innovative ways and partnering with local Chinese companies to do so. We are well placed to continue to grow our business in Greater China”.
The sale is expected to be completed on 30 June.