Dairy giant Fonterra has announced that it has sold off its 9% shareholding in Bega Cheese for almost A$74 million.
In an ASX announcement issued on Friday, Fonterra said that the sale of the shareholding will not have any implications for its long-standing relationship with Bega which includes a license on the Bega brand and a supply contract for cheese.
“We are focused on investing in higher value add dairy products that deliver the best returns for our shareholders. Releasing capital such as through this sale, for future growth is the best use of our shareholders’ funds,” said Chief Financial Officer Lukas Paravicini.
“The Bega brand has an important role in our cheese portfolio where we are a market leader and we will continue to build on our relationship with Bega which goes back more than a decade.”
Fonterra bought its shareholding in Bega Cheese in 2013.