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.
The Australian newspaper reports that Fonterra subsidiary Tip Top could be offloaded as the co-op tries to strengthen its balance sheet.
Fonterra is aiming to reduce its debt by $800 million and is mulling the sale of three assets. It has confirmed that its investment in the Chinese infant formula maker Beingmate is under review. And so are two other value added investments.
But selling Tip Top may not go down well with everyone. Tip Top is the envy of the marketing world, with high brand awareness among New Zealanders.
And given that NZ last week celebrated its inaugural National Ice Cream week, speculation about Tip Top would leave a sour taste among many Kiwi ice cream lovers.
