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Fonterra has had to make a late amendment to its offer document for its controversial shareholders' fund after the buyer of its Western Australian business lodged $A103 million of warranty claims just days after the prospectus was launched.
Fonterra received notice on October 31 from the buyer of its former WA business Peters and Brownes, after the offer document was issued, it says in an emailed statement.
The co-operative broke up the Australian business it bought in 2011 from Heinz Watties, selling Peters to Nestle and Brownes to private equity firm Archer Capital.
"Fonterra has not yet been able to fully analyse the substance, extent or materiality of the claims," the co-operative says.
"If the claims are not resolved through the agreed dispute resolution process they may become the subject of litigation, which Fonterra will defend."
Despite adding the dispute, the amendments to the offer document say there are no legal proceedings or arbitrations expected to have a material impact on the shareholders' fund.
Earlier today, Fonterra said separately it signed an investment agreement with Yutian County to develop two more large-scale dairy farms in the Hebei Province, completing its five-farm hub.
The extra farms will house some 3350 milking cows and add 65 million litres of milk a year once fully operational.
At full capacity, the hub will produce about 150 million litres a year, and is part of Fonterra's plan to produce one billion litres of high quality milk in China by 2020.