“Lactalis becomes one of our most significant Ingredients customers, as we continue to supply milk and other products to the divested businesses,” Hurrell said.
Fonterra will return $3.2b of divestment proceeds to farmer shareholders and unit holders via a $2.00-per-share capital return.
The dairy co-operative’s shareholder farmers approved the sale at a virtual special meeting last month, with 98.85% voting in favour. The proposal required 75% support.
Analysts estimate the sale will deliver about $400,000 tax-free to the average Fonterra farmer.
The sale will also mean Fonterra will have $1b to spend over the next three to four years in projects to generate further value through its remaining high-performing Ingredients and Foodservice businesses.
Under Hurrell, Fonterra has raised over $7b through the sale of its assets, ranging from an ice cream manufacturer to farms in China.
Fonterra sold Tip Top to Froneri for $380 million in 2019, DFE Pharma to CVC Capital for $633m in 2020, holdings in Beingmate for $237m in 2020 and 2021, various farms in China ($640m) and Chile’s Soprole to Gloria Foods ($1.055b) in 2023.
Fonterra said the record date for being eligible for the $3.2b capital return is 5pm on April 9 and the payment date is April 14.
The NZX has approved a three-day trading halt for Fonterra’s shares and Fonterra Shareholders’ Fund units from April 8 until the close of trading on April 10 to ensure all trades have settled before the record date and to allow time to update Fonterra’s share register.