News Companies
Fonterra sells stake in Lithuanian dairy company
Dairy giant Fonterra is selling its stake in the Lithuanian dairy company Rokiskio Suris. That company intends to buy back this stake in May through the Nasdaq Baltic exchange. Fonterra will continue to collaborate in milk processing.
The sale of the 10% stake in the Lithuanian dairy processor aligns with the strategic reorientation that Fonterra has initiated. Fonterra's participation in Rokiskio Suris dates back to 2017, when a stake in the company was acquired for about €7 million. In 2019, Fonterra faced various setbacks and it was noted that the company had overexpanded. This led to a process of divesting various foreign investments, but Rokiskio Suris remained untouched.
Not interested in small partners participating
Now, Fonterra has decided to sell the shares again. The expected selling price is nearly €8 million. Dalius Trumpa, CEO of Rokiskio, states that the shares owned by Fonterra were specifically issued for that company. If another major company were interested in acquiring them, Rokiskio is willing to cooperate, but it is not interested in small partners participating, according to him.
According to a statement from the company, the joint milk processing between Rokiskio and Fonterra will continue, as both parties benefit from it.
