Fonterra, Sharesies join to make share trading easier
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Fonterra has identified three assets during the first phase of a board-led portfolio review, says chairman John Monaghan.
They include the loss-making investment in Chinese baby food maker Beingmate and two value-added investments.
Monaghan says at this stage nothing is off the table; divestment in full or part.
He told the Fonterra AGM in Lichfield last week that a decision and completion of transaction on each investment will be completed this financial year.
On Beingmate, Monaghan says Fonterra staff in China took over the management of the Anmum e-commerce channel from Beingmate in May this year. In that six months Anmum sales grew 43% over the same period last year.
The co-op has appointed Goldman Sachs to review its shareholding in Beingmate and changes to the deal involving its Darnum plant in Victoria, Australia.
Monaghan says the second phase of the review involves the co-op’s full portfolio.
“We are taking stock of our co-op, assessing our investments, major assets and partnerships against our strategy and target return on capital.”
Monaghan insisted Fonterra was not holding a fire-sale.
“We are taking a clinical look across our business. There are no sacred cows and there’s no room for being sentimental.”
The third stage of the review will include exiting certain investments no longer core to the co-op’s strategy, reallocating capital to new or existing ventures or reducing debt.
Monaghan says the board has some tough decisions to make.
He assured shareholders that the board would be transparent to them.
“We’ll keep you up to date with our progress where it is commercially viable and at all times show respect for your capital that we have invested on your behalf.”
Reduce debt
Fonterra is working to reduce its financial year-end debt by at least $800m.
Chief executive Miles Hurrell says current expenditure is set at $650m, a reduction of $211m.
“We are reviewing all discretionary initiatives in the pipeline and challenging all spending to help us achieve this.”
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.