FSF - Fonterra

[RTM]

https://www.nzx.com/announcements/431158

Interesting announcement signalling a big change for Fonterra.
Seems a pity in a lot of ways. Especially if they sell to offshore money.

[strikereureka]

Like selling the family silverware, things must be dire to be getting rid of so much growth potential.....

[Bikeguy]

Like selling the family silverware, things must be dire to be getting rid of so much growth potential.....

Yes, interesting

[Sideshow Bob]

Would be good if they spun some off into the NZX......breathe a bit of life into it.

[Habits]

Would be good if they spun some off into the NZX......breathe a bit of life into it.

Public traded units are 50 percent higher than farmer only shares. This is the widest gap its been

[mshierlaw]

"It is also appropriate for Fonterra to terminate its on-market share buyback programme, which was expected to run until 13 August 2024"

I do not understand why they would suspend the share buyback program as a result of this divestment, is this a regulatory requirement?

[Habits]

Myles Hurrell explained there is more information not yet publicly released, I guess it would amount to insider trading to continue share buyback

[Aaron]

Is it just me or have business experts and politicians been spouting for years that NZ Inc needs to add value to their commodities if we are to progress from being price takers.

Was that all just bull*hit or am I missing something.

Sell the value-add to a foreigner, sounds like the direction NZ is heading.

Mind you I don't know what sort of return Fonterra is making from these brands or their debt position if that is what the sale proceeds are going into.

Fonterra was buying back its own shares?

Obviously debt is not the reason, maybe Miles and the board just don't like the extra work and headaches they bring. I guess even if you earn $4.6mill a year there is still only 24 hours in the day.

https://www.nzherald.co.nz/business/...NLBVEX2FEFHUA/

Maybe I am just negative Miles explains it all here:

“We believe prioritising our Ingredients and Foodservice channels, and releasing capital from our Consumer and associated businesses, will generate more value,” he said.

“At the same time, Fonterra is not the highest-value owner for Consumer and associated business in the long term.

Or even better Forsyth Barr analyst Matt Montgomerie explains:

“I am completely supportive of the rationale that Fonterra is articulating - the focus on core operations.

“Potentially, it is quite an important day for New Zealand Inc.

So basically NZ Inc needs to get back to basic commodities according to the experts.

[RTM]

Is it just me or have business experts and politicians been spouting for years that NZ Inc needs to add value to their commodities if we are to progress from being price takers.

Was that all just bull*hit or am I missing something.

Sell the value-add to a foreigner, sounds like the direction NZ is heading.

Mind you I don't know what sort of return Fonterra is making from these brands or their debt position if that is what the sale proceeds are going into.

Fonterra was buying back its own shares?

Obviously debt is not the reason, maybe Miles and the board just don't like the extra work and headaches they bring. I guess even if you earn $4.6mill a year there is still only 24 hours in the day.

https://www.nzherald.co.nz/business/...NLBVEX2FEFHUA/

Maybe I am just negative Miles explains it all here:

“We believe prioritising our Ingredients and Foodservice channels, and releasing capital from our Consumer and associated businesses, will generate more value,” he said.

“At the same time, Fonterra is not the highest-value owner for Consumer and associated business in the long term.

Or even better Forsyth Barr analyst Matt Montgomerie explains:

“I am completely supportive of the rationale that Fonterra is articulating - the focus on core operations.

“Potentially, it is quite an important day for New Zealand Inc.

So basically NZ Inc needs to get back to basic commodities according to the experts.

No Aaron, it's not just you. I feel exactly the same way.

[Grimy]

Yep. Sell milk/powder.
Export logs.
Send animals offshore.
It's all the opposite of what I thought the way to go was.....