Fonterra Co-operative Group Ltd has announced the commencement of roadshow meetings with potential investor groups as part of the divestment process for its global Consumer and associated businesses.
As stated in the Co-op’s update on the 19th of February 2025, these roadshow meetings are a step towards a potential initial public offering (IPO).
The information pack provided details of the financial profile of the business to be divested, which would be known as Mainland Group if Fonterra proceeds with an IPO. It included indicative pro forma historical financial information up to FY24.
It reflected a more refined view of the components of the Mainland Group business compared to Fonterra's previous financial disclosures, such as its decision to retain a manufacturing facility in Saudi Arabia and its Greater China consumer business.
These refinements have the effect of reallocating a more significant portion of earnings into Fonterra’s core business.
The roadshow meetings will be held in New Zealand, Australia and Asia and will be led by Mainland Group CEO-elect René Dedoncker and CFO-elect Paul Victor.
Fonterra CEO Miles Hurrell said the meetings were an important step in testing the merits and value of an IPO, which the Co-op has been exploring as a divestment option alongside a trade sale.
“We are pleased to be making progress in both the potential trade sale and IPO processes and will continue to keep our farmer shareholders, employees and the market updated on milestones,” said Hurrell.
The Co-op’s decision to pursue a divestment is grounded in understanding where it creates the most value for farmers today and where there’s further room for growth.
Its chosen divestment option will balance maximising long-term value for farmer shareholders, including the best return on capital invested, cementing Fonterra’s competitive advantage in Ingredients and food service, and expanding international channels to market high-quality New Zealand dairy.
A divestment remains subject to approval from Fonterra’s farmer shareholders.
Fonterra has continued to target a significant capital return to be made to farmer shareholders and unit holders following the divestment.
