Fonterra announces sale of two JV farms in China to AustAsia for $115.5m
New Zealand dairy giant Fonterra said that its two joint venture (JV) farms in China are being sold to Singapore-based AustAsia Investment Holdings for a price of $115.5 million.
The sale is anticipated to be wrapped up by the end of this month. It is unconditional and doesn’t need any further regulatory approvals.
The two farms are located in Shandong province.
Fonterra has a stake of 51% each in the farms and its share from the sale will be NZD 88 million ($62 million).
Miles Hurrell, the CEO of Fonterra said that the sale of the two Chinese dairy farms is another key milestone for the co-operative and is in line with its strategy of prioritizing New Zealand milk.
Fonterra announces sale of two JV farms in China to AustAsia for $115.5m. Photo courtesy of Pete Linforth from Pixabay.
Miles Hurrell said: “The sale of the JV farms allows us to focus even more on our farmer owners’ milk and follows the sale of our two wholly owned China farming hubs earlier this year.
“Greater China continues to be one of our most important strategic markets. We remain committed to our China business, bringing the goodness of New Zealand milk to Chinese customers in innovative ways and partnering with local Chinese companies to do so.
“We are well placed to continue to grow our business in Greater China.”
Fonterra had sold its two fully-owned Chinese farming hubs in Shanxi and Hebei provinces to Inner Mongolia Youran Dairy in April 2021 for NZD 552 million ($388.83 million).
In October 2020, the New Zealand dairy company agreed to sell certain Chinese farming assets in two separate deals for a total of NZD 555 million.