Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
After the co-op's share price plummeted to $2.29/share, compared to trading at $3.15 just three months ago, chairman Peter McBride wrote to farmer shareholders advising of the move.
Last week, Fonterra's share price reached $3.09/share, its highest level in over three months. Its share price has dipped since the co-op started consulting on its capital structure review and liquidity in the FSM has been low.
"We know there is concern about the decline in our share price over recent weeks and the impact this is having on your balance sheets," McBride told farmers in an email. "As set out in the capital structure consultation and voting documents last year, we will be putting in place additional arrangements to support liquidity in the FSM when we transition to the new Flexible Shareholding structure, including through arrangements with one or more market-makers.
"While those arrangements are still being worked on, Fonterra will on an interim basis be providing additional financial support to the current registered volume provider to more actively support liquidity in the FSM."
