Potential buyers have already approached New Zealand's biggest business, Fonterra, for Australian assets it must jettison if it takes over Australian milk company National Foods.
Fonterra spokesman John Redwood yesterday confirmed "some expressions of interest" in the fresh milk business of West Australian subsidiary Peters & Brownes.
One investment banker
told the Business Herald that Fonterra's adviser on the takeover bid, Credit Suisse First Boston, was running a sales process.
However, a source said the investment bank had merely responded to inquiries generated by publicity and no formal process existed.
Likewise, Redwood said the calls had been incoming.
Fonterra gave undertakings in January to the Australian Competition and Consumer Commission that it would divest the "Brownes" brand - covering fresh white and flavoured milks, cream, yoghurts and desserts - if the takeover succeeded.
One of the other pledges was to offer to sell the milk supply, processing and distribution arrangements needed to support the brand.
The ACCC says Peters & Brownes employs more than 850 people and has annual sales of more than A$350 million ($374 million).
Redwood did not know the size of the parts that Fonterra would be required to sell. Nor could he say whether the potential buyers wanted just those assets - or the lot.
No comment was available from Peters & Brownes chief executive Nigel Thomas in Australia.
Fonterra's annual report identifies Peters & Brownes as one of the company's top nine local and international brands - along with Anchor, Soprole, NZMP, Anlene, Mainland, Tip Top, Anmum and Meadowfresh.
According to the ACCC, Peters & Brownes has a "significant" export business for branded and bulk ice-cream and dairy products.
The company's ice-cream brands are Cadbury, Peters and Connoisseur.
Fonterra has been doing due diligence on takeover target National Foods' accounts since February 2.
On March 2, Fonterra lifted its bid for National Foods to A$6-a-share to trump an offer of A$5.90-a-share from Philippines brewer San Miguel.
The offer increases to A$6.20 if Fonterra secures more than 90 per cent. The co-operative already holds a near 20 per cent stake in National Foods.
The A$6-a-share bid values National Foods at A$1.78 billion and puts the cost of Fonterra lifting its stake to 50 per cent at about A$550 million.
The A$6.20-a-share bid values the company at A$1.84 billion.
Since Fonterra raised its bid, San Miguel has been outed as a potential buyer of Graeme Hart's New Zealand Dairy Foods, the company that owns brands such as Anchor milk and Fresh'n Fruity yoghurt.
Fonterra
Co-operative owned by more than 12,000 New Zealand dairy farmers.
One of the top 10 dairy companies in the world.
Exports close to 95 per cent of dairy production.
Peters & Brownes
A wholly owned subsidiary of Fonterra.
Makes dairy products for Australia and international markets.
Annual sales of more than A$350 million ($374 million).
Potential buyers have already approached New Zealand's biggest business, Fonterra, for Australian assets it must jettison if it takes over Australian milk company National Foods.
Fonterra spokesman John Redwood yesterday confirmed "some expressions of interest" in the fresh milk business of West Australian subsidiary Peters & Brownes.
One investment banker
AdvertisementAdvertise with NZME.