Tuesday, 20 March 2018 09:55

Beingmate bypasses Fonterra

Written by Rural News Group

font size decrease font size increase font size
Print
Email

Beingmate has sold a subsidiary, despite opposition from cornerstone shareholder Fonterra.

Troubled Chinese infant formula company Beingmate has sold a subsidiary, despite opposition from cornerstone shareholder Fonterra which owns an 18.8% interest.

Beingmate Baby & Child Food Company announced last week that the board has given a green light to sell its fully owned subsidiary Hangzhou Beingmate Dou Dou Children Nutrition Food Co.

An earlier attempt to sell the company was blocked by the board in January because Beingmate B&C was planning to sell it to founder Sam Xie’s associated company.

This time B&C says it will not be sold to related parties.

Fonterra opposed the sale because the Dou Dou company owns a manufacturing plant located on valuable land within a China national heritage zone. The value of this land is expected to soar when its heritage status is approved by the UN.

Fonterra believes Beingmate is selling the land for less than its true value.

The co-op will this week announce its half-year results, expected to contain an update on its $750m investment in Beingmate and another writedown of the value of its 18.8% shareholding.

Fonterra paid $750 million for its stake in Beingmate; the Chinese company’s shares have recently been changing hands at about RMB 5.56, versus the RMB 18 Fonterra paid for them.

More like this

China No Longer Just A Commodity Story - Luxon

China remains New Zealand’s biggest market, taking $23 billion of our exports, but it’s no longer a commodity story, says Prime Minister Christopher Luxon.

Fonterra's Whareroa Wins Directors Award

Fonterra's Whareroa site took home the prestigious Directors Award at the co-op's 'Oscars of Manufacturing', while Clandeboye led the way with multiple wins at this year's Best Site Cup.

Dairy Holdings CEO Colin Glass Retires After 25 Years of Growth

After 25 years it is the right time to step away, says Colin Glass, the retiring chief executive of New Zealand's largest private corporate dairying company, Dairy Holdings.

Fonterra Expands China Foodservice Business with New Anchor Essence Cream

Fonterra is strengthening its foodservice presence in China with the launch of a new cream for professional bakeries at Bakery China 2026 in Shanghai.

Smith V Fonterra

OPINION: To a chorus of crying greenies, and not a minute too soon, the Government has moved to put the courts back in their place through proposed amendments to the Climate Change Response Act 2002, intending to limit climate litigation claims such as Smith v Fonterra, in the interests of providing greater certainty for vital industry.

Featured

DairyNZ: Waikato Farmers Need Certainty on PC1 Rules

DairyNZ says Waikato farmers need certainty on Plan Change 1, but they say that certainty must be matched with practical, workable rules and a clear transition that doesn't get ahead of the new resource management system currently under review.

NZ Rural Contractors Push for Urgent VDAM Rule Reform

While the Government has moved quickly to make commercial hauliers' lot easier during the current fuel crisis, they appear to be stuck in the creep box when it comes to the agricultural industry.

Government's New Planning System, PC1 'Won't Mesh Together Well'

Waikato farmers have been told that the Government’s new planning system legislation and the region’s Plan Change 1 (PC1) “won’t mesh together very well”.

Ravensdown Named Naming Rights Sponsor of A&P Show

Farmer owned co-operative Ravensdown has signed a two-year naming rights sponsorship of the Canterbury A&P Show.

Editorial: Wool's Back in the Black

OPINION: Confidence in the wool sector is rebounding as prices hit levels not seen in more than 15 years.

Queenstown to Host Sold-Out New Zealand Apple and Pear Conference

More than 300 growers, exporters, researchers, service providers and industry leaders will descend on Queenstown later this month for EXPO 2026, the annual conference for New Zealand’s apple and pear sector.