Fonterra scales back over-subscribed farmer supply offer

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

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)


This article is tagged with the following keywords. Find out more about MyNBR Tags

2 Comments & Questions

Commenter icon key: Subscriber Verified

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?

Reply
Share
  • 0
  • 0

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.

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7536 -0.0007 -0.09%
AUD 0.9743 -0.0017 -0.17%
EUR 0.6939 0.0007 0.10%
GBP 0.5075 0.0005 0.10%
HKD 5.8437 -0.0054 -0.09%
JPY 89.8490 -0.1130 -0.13%

Commods

Commodity Price Change Time
Gold Index 1198.2 -6.000 2015-03-27T00:
Oil Brent 56.4 2.710 2015-03-27T00:
Oil Nymex 48.9 -2.560 2015-03-27T00:
Silver Index 17.1 -0.071 2015-03-27T00:

Indices

Symbol Open High Last %
NZX 50 5854.2 5854.2 5854.2 -0.56%
NASDAQ 4863.7 4899.3 4863.4 0.57%
DAX 11920.2 11954.1 11843.7 0.21%
DJI 17673.6 17729.1 17678.2 0.19%
FTSE 6895.3 6910.6 6895.3 -0.58%
HKSE 24727.5 24933.4 24486.2 1.80%
NI225 19295.2 19474.1 19285.6 0.55%