Fonterra (ASX:FSF) is set to sell a portion of its stake in Beingmate Baby & Child Food Company, which is currently a shareholding of 18.8 per cent.
Chief Executive Miles Hurrell says this decision is part of Fonterra’s three-point plan to turn around the business.
He says the relationship with Beingmate has been disappointing.
“China will always be one of our most important markets. We’ve got a strong business there and are still very much focused on the areas in China where we can succeed.
Shares in Fonterra (ASX:FSF) closed flat at $3.58 yesterday.