increase font size
Fonterra has announced today a final price for units in the Fonterra Shareholders' Fund of $5.50 per unit.
The price – which was at the top end of the range provided in the fund's prospectus - was decided after institutional and NZX firms submitted their bids for units on November 26-27.
Chairman Henry van der Heyden said this was positive news for farmer shareholders. Fonterra shares on the Fonterra Shareholders' Market are expected to track the price of units in the Fonterra Shareholders' Fund when trading starts this Friday.
Chief executive Theo Spierings says: "Investors recognised there was some complexity in the structure of Trading Among Farmers, but there was strong acknowledgement of Fonterra's leading position and clear growth strategy.
"As a result of this strong level of interest, the fund will launch at a size of $525 million.
"More than 2500 members of the 'Fonterra Family', as well as around 7000 retail and institutional investors have taken up the opportunity to gain exposure to the dairy sector and Fonterra's future successes.
"With an initial fund size of $525 million, we have been able to ensure that those eligible under the Friends of Fonterra and Bonlac Supply Company categories will receive their requested amounts," says Spierings.
A total 58% of units has been allocated to New Zealand retail and institutional investors, as well as the Friends of Fonterra (including Bonlac). The remainder has been allocated to institutions based offshore.
"We are pleased that the allocations reflect the cooperative's objectives. The majority of units are held by New Zealanders. And we have a good balance between retail investors who are more likely to hold onto their units, and professional offshore and New Zealand investors who are likely to actively trade units and provide liquidity in the fund," says Spierings.
Following the closure of the supply offer, Fonterra has confirmed it will issue around 90 million shares to the Fonterra Farmer Custodian. This will support a fund size of $525 million.
The issue of shares by Fonterra would, at the most, affect the cooperative's earnings per share by about one cent. Fonterra does not intend to permanently retain the resulting equity.
Spierings says both the Fonterra Shareholders' Market and fund were on track to begin operating from Friday.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Fonterra says favourable weather conditions supporting pasture growth is boosting milk production.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.
OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…
