Dairy group, Bega Cheese, has agreed to offload its 49 per cent stake in the Wodonga-based Vitasoy Australia business for $51 million after the Hong Kong-based parent last year decided it wanted to take full control.
Bega inherited its stake in Vitasoy's long-established imitation dairy product business when it bought Lion Dairy and Drinks in 2019
It is still keen to be involved in the plant-based beverage market and is assessing its options in this fast expanding $380m market space.
The decision by Hong Kong-based Vita International Holdings to exercise its call option right to purchase the other half share of the Australian business apparently came as a surprise to Bega late last year.
Vita revealed it had received Foreign Investment Review Board approval for the sale in October.
Bega has confirmed that in accordance with the shareholders agreement, its stake has now been independently valued at $51m.
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However its milk distribution business, BDD Milk, would continue to handle the sale and distribution of Vitasoy Australia's products until the end of March to enable a smooth ownership transition process.
Vitasoy's initial soybean based beverage line was previously imported into Australia from Hong Kong and distributed by Lion Dairy and Drinks predecessor, National Foods until the NSW-Victorian border processing plant was built in 1999 and the joint venture Australian business established.
It now produces about 30 product lines made from soy, rice, almonds, coconut and oats.
Meanwhile, Bega Group has also confirmed that chief executive officer in waiting, Pete Findlay, will officially take over the role from today as outgoing Paul van Heerwaarden steps down.
Mr Findlay will receive a total fixed pay deal worth $960,000 a year, including superannuation.
Mr Heerwaarden's departure during the first part of 2023 was flagged last October, with then chief operating officer, Mr Findlay confirmed back then as his successor.
Mr Findlay joined Bega in 2019 as chief financial officer, becoming COO, responsible for the branded business segment, last year.
He has had more than 25 years experience in professional services and finance roles in various retail, manufacturing and logistics businesses, including convenience store network 7-Eleven, transport giant, Linfox, and Mars Petcare.
Executive chairman, Barry Irvin said Mr Heerwaarden, who has worked with Bega for more than 13 years inexecutive roles, including six as CEO, had come to an agreement with Bega to resign his position at the end of this week.
"Paul has been a wonderful CEO for the Bega Group, substantially contributing to the transformation of the company, and we wish him well with his future."
Mr van Heerwaarden was recently appointed as a director of peak industry research and marketing body, Dairy Australia.
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