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Dairy Farmers today confirmed a formal process was underway to evaluate the interest of third parties to acquire, merge or enter into a joint venture with the Co-operative – thereby allowing its 2,000 farmer shareholders to access the market value of their equity in the business.
After last year signalling that Dairy Farmers would consider options broader than just an ASX-listing in order to maximise shareholder value, Chief Executive, Rob Gordon, said a wide range of domestic and international parties had expressed an interest in the Co-operative.
“During the past four years, Dairy Farmers has been systematically restructured to prepare it for an external investment opportunity,” Mr Gordon said.
“Given the high level of interest, the various options that may be put forward and the requirement to obtain necessary regulatory clearances, Dairy Farmers’ Board will be methodical in its assessment of the available options before it decides upon a recommendation to shareholders.
“To ensure Dairy Farmers’ shareholders receive the full strategic value for the asset they collectively own, as well as security for their milk supply, the Co-operative’s Board will use this formal process, including necessary confidentiality requirements, in a rigorous and fair manner with all interested parties.
“Without doubt, Dairy Farmers is one of the dairy industry’s most valuable assets. During the past four years, the Co-operative has been very deliberately restructured to prepare it for a liquidity opportunity – and we will continue to use a disciplined and rigorous approach to investigate liquidity options for shareholders.”
