Fonterra intends to reduce Beingmate shareholding
7 August 2019
FONTERRA INTENDS TO REDUCE BEINGMATE SHAREHOLDING
Fonterra has announced its intention to sell a portion of its stake in Beingmate Baby & Child Food
Company Ltd, which is currently a shareholding of 18.8%.
Chief Executive Miles Hurrell says this decision is part of Fonterra’s three-point plan to turn around the
business.
“One aspect of this plan was to take stock of our business. As part of this, we have re-evaluated every
investment, major asset and partnership to ensure they still meet the co-operative’s needs today.
“This started with a strategic review of our relationship with Beingmate, which has been disappointing.
“The first action in this review was bringing the distribution of Anmum in China back in-house under our
management.
“We then ended the Darnum joint venture with Beingmate, bought back Beingmate’s share of our Darnum
facility in Australia, and entered into a multi-year agreement for Beingmate to purchase ingredients from
us.
“What remains is our shareholding in Beingmate Baby & Child Food Co., which we now view as a
financial investment only.
“We have talked to a number of parties regarding the potential sale of our entire stake in Beingmate, but
so far have been unsuccessful in finding a buyer.
“As a result of this, we are now considering selling part of our holding and, as required by local listing
rules, need to pre-announce our intention.”
Subject to demand for the shares, under the Shenzhen Stock Exchange market rules it is only possible to
sell up to 1% every 90 days directly on the exchange, or sell up to 2% in a single block every 90 days.
Trades greater than 5% can be made to an individual party in an off-market transaction.
“From here, it’s about making pragmatic decisions to get the best outcome for the Co-op from our holding
in Beingmate,” says Mr Hurrell.
“China will always be one of our most important markets. We’ve got a strong business there and are still
very much focused on the areas in China where we can succeed.”
ENDS
For further information contact:
Philippa Norman
Fonterra Co-operative Group
Confidential to Fonterra Co-operative Group Page 2
Fonterra Communications
Phone: +64 27 582 0492
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- FCG — Fonterra Co-operative Group Limited: Fonterra intends to reduce Beingmate shareholding2019-08-06
“7 August 2019 FONTERRA INTENDS TO REDUCE BEINGMATE SHAREHOLDING Fonterra has announced its intention to sell a portion of its stake in Beingmate Baby & Child Food Company Ltd, which is currently a shareholding of 18.8%. Chief Executive Miles Hurrell says this decision i…”
- FCG — Fonterra Co-operative Group Limited: Fonterra announces FY19 annual results and new strategy2019-09-25
“Notes to the Summary Financial Statements CONTINUED FOR THE YEAR ENDED 31 JULY 2019 g) Changes to arrangements with Beingmate Baby & Child Food Co., Ltd (Beingmate) Acquisition of Darnum manufacturing plant In January 2019 Fonterra regained full ownership of the Darnum manufactur…”
- FCG — Fonterra Co-operative Group Limited: Fonterra provides strategy, milk price and earnings updates2019-05-22
“23 MAY 2019 Fonterra provides strategy, milk price and earnings updates • Key third-quarter financial performance numbers: o Sales volumes: 16.6 billion LME, up 4% o Revenue: $15 billion, up 1% o Gross margin: $2.2 billion, down 3% o Normalised operating expenses: $1.8…”