AB Rokiskio suris, a manufacturer of cheese and dairy ingredients based in Rokiskis, Lithuania, said in a statement this Tuesday that its management had reached a preliminary agreement with Fonterra regarding a planned investment in its share capital.

Rokiskio is planning to issue new shares to Fonterra representing 10% of its authorised capital, at a price of €1.98/share based on the past six months’ average. Based on the company’s current number of shares listed on Nasdaq Baltic, the value of the new share issue is in the region of €6.4m.

Rokiskio had €226m in sales and 1,500 employees last year. It returned an operating profit before interest and taxes of €11.72m.

Rokiskio shares jumped 10% to €2.59 following the announcement on Tuesday.

Fonterra already has European operations in the Netherlands, the UK and France, including a Dutch ingredients factory. It already had a partnership with Rokiskio prior to Tuesday’s announcement.

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