Winston Peters calls Fonterra vote result 'utter madness'
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
Farmers and other investors will have to fork out $4.60 - $5.50 per unit in the Fonterra Shareholders Fund.
The Final Price payable per unit will be announced late November but Fonterra chairman says it won't be less than $4.60/unit.
"That's a line we're drawing in the sand," he says. The co-op is offering $500m worth of units in the offer which opens next week and closes on November 21.
Van der Heyden says the final price will be announced following the completion of a bookbuild process, under which selected institutional investors and NZX Firms are invited to lodge bids indicating the number of units they wish to apply for at a range of prices. The final price could be within or above the indicative price range.
The cooperative has forecast a dividend for the 2013 financial year of 32 cents/share. The indicative price range implies a 2013 financial year gross distribution yield of 5.8% to 7%.
Fonterra Shareholders Fund, is a unit trust that will hold shares sold by Fonterra farmers and issue a unit per share to investors.
Fund chairman John Shewan says it is important to note this is an opportunity to invest in units issued by the Fonterra Shareholders' Fund, and is not an opportunity to acquire Fonterra Shares.
"However, the return on a unit is essentially dependent on the performance of Fonterra," says Shewan.
Highlights of the Fonterra offer are;
• The offer comprises $500 million of Units (with the ability to accept oversubscriptions of up to a further $25 million).
• Although there is no general public offer, investors are encouraged to contact a NZX Firm to determine whether they can participate in the Offer to buy Units in the Fund through the Broker Firm Offer.
• The Broker Firm Offer is available only to New Zealand resident clients of NZX Firms who have received an allocation from that NZX Firm.
• The Friends of Fonterra Offer recognises the contribution that employees, sharemilkers, current and retired Shareholders have made to Fonterra's performance since its formation. Minimum application amounts under this offer are set at $2000. Maximum application amounts under the Friends of Fonterra Offer are set at $50,000, except in respect of Fonterra's New Zealand and Australian employees, whose maximum application amount is $25,000. This offer is extended to:
- Fonterra Farmer Shareholders, as at 26 October 2012.
- Fonterra-supplying sharemilkers, as at 26 October 2012.
- Former Fonterra Farmer Shareholders who have retired from the industry after 26 October 2007 and have not supplied a competitor of Fonterra since last supplying Fonterra.
- Permanent employees in Australia and New Zealand.
• Up to $25 million of Units have been allocated for subscription under the Australian Supplier Offer to shareholders of the Bonlac Supply Company Limited and suppliers of milk to Fonterra Milk Australia Pty Ltd (both of which are Australian registered companies).
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.
Rural retailer Farmlands has reported a return to profitability, something the co-operative says shows clear progress in the second year of its five-year strategy.
OPINION: Microplastics are turning up just about everywhere in the global food supply, including in fish, cups of tea, and…
OPINION: At a time when dairy prices are at record highs, no one was expecting the world's second largest dairy…