Fonterra has dismissed speculation it is among potential bidders for India's Tirumala Milk Products.
The co-operative scotched a Times of India report naming it with French food conglomerate Danone as vying for a controlling stake in Hyderabad-based Tirumala, with a spokesman for the dairy exporter calling it "rubbish".
The $US450 million enterprise value figure reported would be material for Fonterra and would need to be disclosed, he says.
Global private equity firm Carlyle Group, which holds 20%, and Tirumala's five other owners have reportedly short-listed three investment banks to run the sale. The founders are expected to keep minority stakes.
Tirumala is the second biggest private supplier of liquid milk in India's southern states, with turnover of 117.5 billion rupees, or $NZ2.61 billion at today's exchange rate of 44.98 rupees per New Zealand dollar.
It processes 1.6 million litres of milk a day in a string of plants across India's southern states of Tamil Nadu, Andhra Pradesh and Karnataka.
India is the world's biggest dairy supplier, accounting for some 16% of total production, according to the National Dairy Development Board. The bulk of that is consumed domestically.
Last year, Fonterra embarked on a plan to look at the feasibility of farming in India as part of a government-led drive to forge closer ties with the world's 10th biggest economy.
Fonterra has identified rapidly growing emerging markets as a strategic target and has saddled India alongside China in the new management structure.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Chorus hits back at Spark as war of words erupts over network
- Political Week: Two important messages from Brexit for New Zealand
- Can Andrew Little win next year’s election for Labour? A reluctant assessment
- New tax a case of guilty until proven innocent?
- Too many Wellington homes in need of serious repair
Most listened to
- Business Week in Review with Grant Walker & Andrew Patterson
- Matthew Hooton on the state of the British Labour party under Jeremy Corbyn
- Rodney Hide on the Ombudsman’s investigation into SSC conduct of MFAT leaks inquiry
- David Cohen on how to walk out of a TV interview
- Imperial Tobacco lobbyist insists NZ visit about “contributing expertise,” not pressuring government on plain packaging law