The sale of the farms to Inner Mongolia Youran Dairy Co Ltd (Youran) was announced in October 2020.
The transaction proceeds comprise the original sale price of NZ$513 million plus NZ$39 million in settlement adjustments, giving cash proceeds of NZ$552 million.
Fonterra chief executive officer Miles Hurrell said the completion of the sale was an important milestone for the company following its strategic refresh.
“Fonterra has contributed to the development of the Chinese dairy industry by establishing these farms and we’re pleased to now hand ownership over to Youran for the next phase of development,” Mr Hurrell said.
“The China market is fast moving and inspires us to keep innovating.
“Our China team will now continue with their focus on creating value from our New Zealand farmers’ milk through new products, applications and close partnerships with our customers.
“As we’ve seen from our recent FY21 interim financial results, our China business is performing very well, underpinned by strong demand for New Zealand dairy driven by our team on the ground.
“With these foundations, we are well placed to continue to grow our Greater China Foodservice, Consumer and Ingredients businesses.”
The completion of the sale of Fonterra’s 85 per cent interest in its Hangu farm to minority shareholder Beijing Sanyuan Venture Capital Co Ltd, as announced in October 2020, is progressing and is expected to be completed this financial year.
7°C