Fonterra announced today that it had completed the sale of its Chilean Soprole business to Gloria Foods, JORB S.A. (Gloria Foods).
When announced in November 2022, the sale was subject to several conditions, including receipt of regulatory approvals and commencement of an irrevocable public tender offer process in Chile for the outstanding shares in Soprole not already owned by Fonterra.
Fonterra was pleased to confirm that these conditions have now been satisfied. The divestment of Soprole comprised the sale of shares in a Fonterra-owned holding company and has been completed in accordance with the terms announced in November 2022. Final transaction proceeds remain subject to customary post-completion adjustments.
Fonterra CEO Miles Hurrell stated that the divestment was a significant milestone in implementing Fonterra’s strategy and allowing the cooperative to reduce debt and return around 50 cents per share and unit. As previously announced, this approximates NZD 800 million in return to farmer-owners and unit holders.
“We remain on track for a record date for the proposed capital return in late September 2023, with cash to be received by our farmer-owners and unit holders the following month,” said Hurrell.
