Fonterra scales back over-subscribed farmer supply offer

Fonterra has scaled back its offer to farmer shareholders to sell the economic rights of their shares into the Shareholders' Fund.

The NZX-listed Fonterra Shareholders' Fund, which gives outside investors access to the dairy exporter's dividend stream, will buy almost 60 million so-called 'wet' shares worth $475 million at $7.92 apiece, with those new units sold to Fonterra and redeemed for shares, the cooperative said in a statement.

That means the supply offer will not affect the number of units on issue in the fund.

Fonterra received offers of some 75.2 million 'wet' shares worth $595.8 million and scaled it back to the maximum amount. The transfer will take place on May 30.

Units in the fund sank 1.5 percent to $7.84 on Friday and have gained 11 percent this year.

(BusinessDesk)


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Does the government or the directors of Fonterra know what they are doing? And how Fonterra works?
What I'm asking, is someone, anyone, please sensibly explain the creating of Fonterra? And why?

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So the Fonterra directors sell shares to foreign institutions at $5.50 and then buy shares from farmers at $7.92? Just as well the Chinese processors are coming. They will have a field day.

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