Fonterra has provided an update on their sale of Chilean business, Soprole, to Gloria Foods.
Having announced their intention in November 2022, there are various conditions subjected to the deal, including the receipt of approval from the Chilean competition authority, Fiscalía Nacional Económica.
Fonterra CEO, Miles Hurrell said he was pleased to know the approval from Fiscalía Nacional Económica has been received.
“Completion of the sale remains subject to satisfaction of other conditions previously announced, including commencement of an irrevocable public tender offer process in Chile for the outstanding shares in Soprole not already owned by Fonterra.”
Committed to targeting a significant capital return to shareholders and unitholders, the Fonterra Board intends to reach a final decision on the timing and amount once the sale of Soprole is unconditional.
“Receipt of FNE approval is a significant milestone for the transaction and we remain on track in the sale process. We will update the market on expected timing for completion of the sale as the remaining conditions are progressed,” said Hurrell.
Committed to targeting a significant capital return to shareholders and unitholders, the Fonterra Board intends to reach a final decision on the timing and amount once the sale of Soprole is unconditional.
Other factors relevant to the final decision include cash proceeds being received n New Zealand and Fonterra’s debt and earnings outlook at such time.
