Future Consumer Enters JV With Fonterra
Future Consumer Limited has informed that the board of directors of the company at its meeting approved to enter into a 50:50 joint venture arrangement with Fonterra (Europe) Cooperatie U.A, subsidiary of Fonterra Co-operative Group Limited, New Zealand, a leading global dairy nutrition company (Fonterra). The objective of the joint venture is to introduce a full range of consumer and foodservice dairy products in India. The company and Fonterra shall, subject to such further consents and approvals that may be required, make an investment at face value in the equity capital of the joint venture company to be formed.
The additional important terms and conditions of the said JV Agreement inter alia are as follows:
a. The Company and Fonterra each shall hold 50.00% of the paid-up share capital of the JV Company.
b. The Company and Fonterra inter alia shall have the right:
1. To nominate three Directors each, on the Board of the JV Company
2. To vote on few customary items in the Reserved Matters as provided under the JV Agreement.