Fonterra scales back over-subscribed farmer supply offer

Fonterra Cooperative Group, the world’s biggest dairy exporter, 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 won’t 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.co.nz

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Fonterra Shareholders' Fund Units
Fonterra normalised earnings meet guidance; drought hurts NZ, ANZ profit falls
Fonterra hikes forecast payout again on eve of earnings result; warns on 1H of 2014 year
Fonterra looks to double Chinese milk production with second farming hub
Fonterra managers failed to immediately escalate WPC80 concerns to CEO, review finds
China repair job under way with next week's Fonterra board visit
Fonterra hikes forecast farmgate price 30 cts on strong international prices
Fonterra Shareholders’ Fund Unit (FSF.NZ)
Fonterra denies DCD claims after Sri Lankan court imposes temporary ban on products
Fonterra food scare claims scalp of NZ Milk Gary Romano