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Fonterra has agreed to divest its 51 percent stake in two joint venture farms in Shandong province, China, to Singapore-based AustAsia Investment Holdings for $62.1 million.
The farms will be sold to Singapore-based AustAsia for $115.5 million.
Fonterra, which has decided to prioritize producing New Zealand milk, has completed selling its wholly-owned China farming hubs.
Fonterra CEO, Miles Hurrell, acknowledged that Greater China is among their most important and strategic markets and would bring the goodness of New Zealand milk to Chinese customers in innovative ways and by partnering with local Chinese companies.
The sale of the JV farms, which requires no further regulatory approvals, is expected to be completed on June 30.
