Fonterra examines ownership options for Australian companies, including considering IPO
Fonterra CEO Miles Hurrell said the Australian company is on the right track and remains important to the cooperative.
“By having access to permanent external capital, we believe the Australian company will be in the best position to execute its strategy and realize its full potential, while unlocking capital for the cooperative,” said Hurrell.
âThe strength of the Australian company has been demonstrated by recent results and the execution of its strategic plan. Under the leadership of RenÃ© Dedoncker, the Fonterra Australia management team has a clear strategy to maintain the current momentum of the company, supported by continued investments in product mix and growth.
Fonterra Australia Managing Director RenÃ© Dedoncker welcomed the review of the property.
âToday’s announcement is an important milestone for our company which plays an important role in the Australian dairy industry,â she said.
âIt would be a great result if Australian investors, including our staff and the farmers who supply us with their milk, could have the opportunity to participate in the ownership of our business with its iconic Australian brands such as Western Star, Perfect Italiano and Bega. . .
âAs we explore our options, we will keep in mind that our relationships with customers and farmers are at the heart of our business. These key stakeholders can be confident that there will be no change in the way we engage with them during this period, while an outcome that will translate into better access to external capital will enable Fonterra Australia to continue to advance the Australian dairy industry. “
Fonterra Australia Supplier Council Chairman Alan Davenport said he hoped the ownership options might provide opportunities to further align supplier interests.
âFarmers are already proud to supply milk to a fantastic stable of local brands, and I am delighted that one of the options being considered is an IPO of Fonterra Australia. I look forward to working with RenÃ© and the team to ensure that any change in the ownership structure builds on the partnership between Fonterra Australia and its farmer suppliers, âsaid Davenport.
Fonterra has been a proud participant in the Australian dairy industry for two decades. During this period, Fonterra Australia has invested in market leading consumer and foodservice businesses complemented by a strong ingredients business.