Fonterra (ASX:FSF) receives anti-trust clearance in China to sell two farming hubs

Company News

by Rachael Jones

Fonterra (ASX:FSF) has received anti-trust clearance in China to sell its two wholly-owned farming hubs to Inner Mongolia Natural Dairy Co. Ltd, a subsidiary of China Youran Dairy Group.

Subject to obtaining the remaining regulatory approvals in China, Fonterra expects to complete the sale within this financial year.

The transaction value initially indicated of RMB 2.31 billion remains subject to usual purchase price adjustments.

As previously announced, Fonterra intends to use the cash proceeds from the transaction to pay down debt, as part of its overall debt reduction programme.

Shares in Fonterra (ASX:FSF) closed flat at $4.10 yesterday.