Entrepreneur bags NZDF share from Fonterra

AUTRALIA/NEW ZEALAND – A New Zealand entrepreneur has made an offer to buy a controlling stake in New Zealand Dairy Foods (NZDF).

Graeme Hart has offered NZ$238 million (118.8 million euro) for the 50% stake through his Rank Group private vehicle. The offer represents 0.84 euro per share.

Hart will buy the shares from New Zealand co-operative Fonterra, which was ordered to sell its 70 million NZDF shares as a condition of its formation from the merger of Kiwi Co-operative Dairies and New Zealand Dairy Board in 2001.

In a statement, Fonterra chief financial officer Graham Stuart said: “The offer is the best available going following an exhaustive sales process that canvassed all potential international buyers.” However, the Great Milk Company (GMC), formed by NZDF farmer shareholders, is reported to be angry after its bid, also for 0.84 euro per share, was rejected.

Hart is expected to offer to buy NZDF shares from the 6,100 other shareholders to gain a 100% control in the company. The GMC is urging shareholders not to sell.

The New Zealand Commerce Commission blocked a bid from Australia’s National Foods or NZDF in March.

Also this week, Fonterra announced the candidates for its board of directors election. Three of the eight candidates will become directors. The results will be announced at the end of May.