Fonterra has purchased a minority interest in Prolesur for NZD $29.3 million ($19.3 million), as it aims to streamline its operations in Chile.
The New-Zealand dairy cooperative has bought an additional 13.6% stake in the Chilean milk processor from Fundación Isabel Aninat (the Fundación), raising its ownership of Prolesur from 86.2% to 99.9%.
Located in southern Chile, Prolesur sells most of its production to Fonterra’s subsidiary Soprole, a Chilean dairy brand which markets yogurt, milk, desserts, jelly and butter.
According to Fonterra, the move will allow the company to simplify the interface between Prolesur and Soprole and will better integrate the two businesses.
CEO of Fonterra AMENA Kelvin Wickham said: “Prolesur and Soprole are both strong businesses but their recent performance has been impacted by challenging market conditions.
“Having the two more closely integrated will generate operating efficiencies across the supply chain from milk collection, to processing and administration.
“It also allows us greater flexibility as we focus on realising the best value for the co-op from our businesses in Chile in line with our new strategy.”
The remaining 0.1% shares in Prolesur are held by minority shareholders, which Fonterra plans to acquire at the same price per share being paid to the Fundación for its shareholding.
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