Expert Says Fonterra Backing Current Strategy With New CEO Appointment
The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.
At a special online general meeting today, 98.85% of the total shareholder votes cast were in support of the capital return proposal.
The result means Fonterra can now seek final court approval to undertake the capital return of $2/share, or about $3.2 billion, to shareholders and unit holders, subject to the divestment of Mainland Group to Lactalis being completed.
Lactalis is paying Fonterra $4.22 billion for the business. Fonterra expects the transaction to be complete in the first quarter of the 2026 calendar year, subject to separation of the businesses from Fonterra and provided the remaining regulatory approvals are received within the expected timeframes.
Once these steps have been completed, the co-operative will confirm the record date for the capital return, which will be within the five business days prior to the capital return payment being made to shareholders and unit holders.
Fonterra shareholders and unit holders are expected to receive the payment in early April.
Read More:
- Dedoncker Departs Fonterra After Mainland Group Sale
- Fonterra’s exit from Australia ‘a major event’
- Out with Fonterra, in with Mainland Dairy
