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