What’s at stake: Fonterra’s potential $2.5b divestment aims to enhance shareholder value by focusing on higher-margin core operations.
Background: Fonterra is simplifying its business by selling its consumer brands and integrated businesses in Oceania and Sri Lanka to focus on dairy ingredients and food service sectors.
Key players: Fonterra, Miles Hurrell, potential buyers including Nestlé.
New Zealand-based global dairy giant Fonterra could fetch upwards of $2.5 billion for the sale of its consumer business along with its integrated businesses, Fonterra Oceania and Fonterra Sri Lanka.
Industry analysts suggested the business could sell for a multiple between nine to 13 times earnings
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Key points
What’s at stake: Fonterra’s potential $2.5b divestment aims to enhance shareholder value by focusing on higher-margin core operations.
Background: Fonterra is simplifying its business by selling its consumer brands and integrated businesses in Oceania and Sri Lanka to focus on dairy ingredients and food service sectors.
Key players: Fonterra, Miles Hurrell, potential buyers including Nestlé.
