(Reuters) – Dairy giant Fonterra said on Wednesday it would engage with potential buyers of its global consumer business and integrated businesses over the coming weeks, and also named key management team members in preparation for an initial public offering.
Auckland, New Zealand-based Fonterra in November last year outlined its plans to explore potential divestment options for Fonterra Oceania and Fonterra Sri Lanka, including a sale and an IPO.
“Our intention is to thoroughly test the terms and value of both a trade sale and IPO before selecting an option to put to farmer shareholders for a vote,” Chief Executive Officer Miles Hurrell said.
The operations being considered for a possible sale or divestment accounted for about 19% of the group’s operating earnings in the first half of fiscal 2024, it said in May.
Should the company proceed with an IPO of the businesses, Fonterra will name the brand Mainland Group, and has already appointed René Dedoncker as the CEO-elect.
It also appointed Paul Victor, the former chief financial officer of Incitec Pivot as the CFO-elect for Mainland Group.
“We recognise the ongoing interest in the divestment process and will provide further updates as we make progress,” Hurrell said.
(Reporting by Sameer Manekar in Bengaluru; Editing by Alan Barona)
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