Fonterra carving up Bonlac

AUSTRALIA/NEW ZEALAND – Fonterra is set to increase its current 25% stake in Bonlac Foods to 50%, subject to approval by Bonlac’s supplier shareholders.

Bonlac Supply Company, which would hold the other half of the stake, and Fonterra are presenting the broad principles of the proposal to Bonlac’s supplier shareholders this week.

The move is the latest in a series of discussions between the two companies, which looks likely to end with New Zealand-based Fonterra taking control of Bonlac.

Bonlac chairman Noel Campbell said: “The Bonlac Board is confident the proposal will ensure our long-term sustainability, a competitive milk price for our suppliers, full value for Bonlac shares and the recommencement of dividend payments following a return to profitability.”