Fonterra has completed the sale of its Chilean Soprole business to Gloria Foods.
Fonterra chief executive Miles Hurrell said the divestment is a significant milestone in the implementation of Fonterra’s strategy and allows the co-op to reduce debt and return around 50 cents per share and unit, which is $800 million, to farmer owners and unit holders as previously announced.
“We remain on track for a record date for the proposed capital return in late September 2023, with cash to be received by our farmer owners and unit holders the following month,” Hurrell said.
The divestment of Soprole comprises the sale of shares in a Fonterra-owned holding company.
When announced in November 2022, the sale was subject to a number of conditions, including receipt of regulatory approvals and commencement of an irrevocable public tender offer process in Chile for the outstanding shares in Soprole not already owned by Fonterra.
Those conditions have now been satisfied and final transaction proceeds remain subject to customary post-completion adjustments.