March 10, 2025

 

Fonterra releases divestment roadshow presentation 

 

 

Fonterra Co-operative Group Ltd is commencing roadshow meetings with potential investor groups on March 10 as part of a divestment process for its global Consumer and associated businesses.  

 

As stated in the co-operative's update on February 19, these roadshow meetings are a step towards a potential initial public offering (IPO), Fonterra said.  

 

The co-operative also provided a an information pack which reveals details of the financial profile of the business to be divested, which would be known as Mainland Group if Fonterra proceeds with an IPO.  

 

The pack includes indicative pro-forma historical financial information up to FY2024 and reflects a more refined view of the components of the Mainland Group business compared to previous financial disclosures by Fonterra, such as the decision for Fonterra to retain a manufacturing facility in Saudi Arabia and its Greater China consumer business.  

 

Those refinements have the effect of reallocating a larger portion of earnings into Fonterra's core business.  

 

The roadshow meetings will be held in New Zealand, Australia, and Asia, and will be led by Mainland Group chief executive officer-elect René Dedoncker and chief finance officer-elect Paul Victor. 

 

Fonterra CEO Miles Hurrell said the meetings are an important step in the process of testing the merits and value of an IPO, which the co-operative is exploring as a divestment option alongside a trade sale.  

 

"We are pleased to be making progress in both the potential trade sale and IPO processes and will continue to keep our farmer shareholders, employees, and the market updated on milestones," said Hurrell.  

 

Fonterra's decision to pursue a divestment is grounded in an understanding of where it creates the most value for farmers today and where there's further room for growth, the co-operative said. Its chosen divestment option will balance: 

 

    - Maximising long term value for farmer shareholders, including the best return on capital invested;

 

    - Cementing Fonterra's competitive advantage in Ingredients and Foodservice;

  

    - Expanding international channels to market for high-quality New Zealand dairy. 

 

A divestment remains subject to approval from Fonterra's farmer shareholders.  

 

Fonterra continues to target a significant capital return to be made to farmer shareholders and unit holders following the divestment, the co-operative said. 

 

 - Fonterra