SYDNEY, Oct 30 (Reuters) - New Zealand dairy co-operative Fonterra FSF.NZ said on Friday it has sold off its 9 percent shareholding in Australia's Bega Cheese Ltd BGA.AX for A$74 million ($52.7 million) as it needs to free up capital for more profitable investments.
"Releasing capital such as through this sale for future growth is the best use of our shareholders' funds," Fonterra said in a statement after the close of trading. It did not say to whom the stake was sold.
Fonterra has a commercial arrangement with Bega, which cuts and wraps cheese at its Australian factory. Fonterra uses the Bega brand in Australia under a franchise agreement.
The disposal of shares held no implications for the working relationship between the two companies, according to Fonterra.
Fonterra, the world's biggest dairy exporter, acquired 6 percent of Bega in October 2013 for A$46 million, or $4.95 a share, and had since raised that to 9 percent.
Bega closed up 1.75 percent at A$5.80 on Friday.
Bega this week said it expects increased price competition and price pressure on dairy commodities as a result of lower milk prices from competing regions such as New Zealand. ($1 = 1.4051 Australian dollars)