New Zealand's Fon­terra plans to buy stake in dairy Rokiskio Suris

The Baltic Times - - BALTIC NEWS - BNS/TBT Staff

New Zealand's dairy gi­ant Fon­terra plans to buy a 10 per cent stake in Rokiskio Suris, a lead­ing Lithua­nian dairy group, for over 7 mil­lion eu­ros. Rokiskio Suris and Fon­terra have reached a pre­lim­i­nary agree­ment on the ac­qui­si­tion of a new share is­sue, the Lithua­nian com­pany said in a stock ex­change re­lease.

"We re­gard the strate­gic in­vest­ment by the global com­pany, ap­proved af­ter ex­ten­sive ex­plo­ration across East­ern Europe, as a sign of con­fi­dence not only in us as busi­ness part­ners, but also in the Baltic mar­ket as a whole," Dal­ius Trumpa, chair­man of the man­age­ment board at Rokiskio Suris, said in a press re­lease.

The is­sue price will be set at 1.98 eu­ros, which is the weighted av­er­age mar­ket price per share be­tween Jan­uary 12 and July 12. Some 3.568 mil­lion shares worth 7.1 mil­lion eu­ros in to­tal are planned to be is­sued.

Rokiskio Suris is con­ven­ing a share­holder meet­ing on September 22 to ob­tain ap­proval for the planned new is­sue and give Fon­terra the right to buy the new shares.

Fon­terra, which holds an 85 per cent share of New Zealand's milk pro­duc­tion and pro­cess­ing mar­ket, posted a net profit of over 700 mil­lion eu­ros on rev­enue of 14 bil­lion eu­ros for the past fi­nan­cial year. The com­pany pro­cesses around 22 mil­lion tons of milk an­nu­ally and ex­ports 95 per­cent of its prod­ucts.

Pieno Pra­mones In­ves­ti­ciju Valdy­mas, RSU Hold­ing and An­tanas Trumpa in late June held a com­bined stake of 79.57 per­cent and SEB cus­tomers owned 5.51 per cent of shares in Rokiskio Suris, which is quoted the blue-chip Main List of the Nas­daq Vil­nius stock ex­change.

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