Winston Peters calls Fonterra vote result 'utter madness'
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
Speaking at Fonterra's annual meeting last week, chair Peter McBride revealed that any amount of any capital return will be determined by the successful divestment of assets, as well as the co-op's financial position at the time.
As part of its strategy to 2030, Fonterra set a goal of a return of about $1 billion to shareholders and unit holders from divestments, including Chilean business Soprole and a stake in the Australian business.
But after looking at options, Fonterra has decided to maintain full ownership of the Australian business.
Part of the 2030 strategy includes pumping $1 billion each into sustainability and moving milk into higher milk products.
McBride says the co-op is still committed to investment targets for sustainability, higher-value products and R&D.
However, he points out that return to shareholders and unit holders had anticipated divestments including Soprole and a stake in the Australian business.
"Even thoughwe have since decided not to sell a stake in our Australian business, we are still committed to targeting a significant capital return to our shareholders and unit holders.
"We need to be mindful that we retain the asset in Australia, and the earnings associated with it. The amount of any capital return will be determined by the successful completion of the divestment programme as well as the co-op's financial position at the time."
