Source: Radio New Zealand
Fonterra will hold a shareholders meeting on 19 February to approve a proposed capital return of $2 per share. 123rf / Supplied images
Dairy giant Fonterra expects to complete the sale of its consumer business in the first quarter of this year.
The $4.2 billion sale of Mainland Group to France’s Lactalis remains subject to numerous regulatory approvals, with Australia’s Foreign Investment Review Board the most recent to green-light the acquisition.
The co-operative will hold a special meeting for shareholders on 19 February to approve a proposed capital return of $2 per share, equivalent to around $3.2b once the sale is complete.
Farmer shareholders overwhelmingly approved the sale of Mainland Group in October, which includes well-known brands like Anchor, Mainland and Kāpiti.
The capital return required at least 75 percent approval of the votes cast at the upcoming special meeting.
“As previously indicated, the payment should be tax-free, although it is recommended that shareholders and unit holders obtain independent tax advice on the effect of the capital return based on their individual circumstances,” the co-op said.
Fonterra said the separation of the consumer brands was also progressing well.
“Holding the shareholder vote on the capital return in February will enable Fonterra to return capital to shareholders and unit holders as soon as possible after the transaction is complete,” it said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
