Revamped Fonterra to be ‘more capital-efficient’
Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.
Milking It was surprised to read former Prime Minister Helen Clark’s comments about “a number of concerning aspects of Fonterra’s iconic dairy brands”.
In a social media post, Clark asked whether an investment programme was planned for the proceeds. “Or will there be just a one-off cash distribution to shareholders which could well end up being priced into the value of farmland?”
Dairy farmers have done it tough for the past few years with low milk price and soaring input costs. The $2/share capital return will help farmers reduce debt and catch up on maintenance work on farms.
And, by the way, how farmers spend this money is their call.
Read More:
- Strong shareholder mandate needed for Fonterra's $4.22b divestment
- Fonterra consumer business sale price jumps to $4.22b
- Fonterra seeks strong farmer mandate for sale
