Fonterra is claiming a vote of confidence in the company's new capital structure with $61 million raised from the issue of 13.5 million “dry” shares.The dairy giant's capital structure changes late last year allowed farmers to increase their s
Fonterra is claiming a vote of confidence in the company’s new capital structure with $61 million raised from the issue of 13.5 million “dry” shares.
The dairy giant’s capital structure changes late last year allowed farmers to increase their shareholding in the co-operative from a stake based on 100% of their milk production, to 120%.
Earlier this month Fonterra extended the closing date for shareholder suppliers to buy shares from September 21 to September 30.
This was to allow farmers more time to consider their options after the announcement of the company’s financial results for the 2009/10 season, and therefore their final income for the year.
Fonterra chairman Sir Henry van der Heyden said more than 70% - about 7500 suppliers – were now holding dry shares, which represented about 6% of the total shares on issue.
Sir Henry said the share uptake represented $61 million of new equity the company would otherwise not have had.
