Fonterra, Sharesies join to make share trading easier
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Fonterra unit holders have given a lukewarm response to the co-op's proposed capital structure.
They are disappointed that Fonterra rejected their recommendation that the fund be sold to unit holders at fair value. However, they've welcomed the proposal to cap the overall size of the fund at 10% of total Fonterra shares on issue rather than at the current size of around 6.7%.
In a letter to unit holders sent last week, fund chairman John Sherwin says capping the fund at 10% goes part way to addressing the size-related concerns.
"Subject to the Fonterra board's approval, the amended proposal provides the scope for the fund to be increased in size at a suitable time in the future to address the liquidity and other size-related considerations," he says.
"While it is disappointing that no progress has been made on the buyback recommendation, the subcommittee welcomes Fonterra's decision to modify it's recommendation around the capping of the fund."
Fonterra's farmer shareholders will vote on the new capital structure next month. Details will be released and mailed to farmers this week, then voting starts on November 19.
A special meeting will follow Fonterra's annual general meeting on December 9 for the vote. The proposal requires 75% support among voting shareholders to pass.
The proposal has already passed one hurdle - the requirement of a 50% yes vote by the Fonterra Co-operative Council (the old Shareholders Council).
Fonterra chairman Peter McBride says the council has already voted 92% in support of the recommended changes.
The co-operative has made several changes to the capital structure proposal put forward in September. The future of the fund has been a key issue.
McBride says the overall limit on the size of the fund has been reduced from 20% to 10% of total shares on issue, rather than having a total ban on any further shares being exchanged into units.
"This recognises that the fund size, which is currently around 6.7% of total shares on issue, could change from time to time subject to the overall limit," McBride claims. "Shares will still not be able to be exchanged into units on a day-to-day basis, and the board retains its current rights to regulate this process."
The fund, capped at $500m, has been a disappointment for investors who paid for units in return for dividends. Poor investment decisions by Fonterra and a lack of earnings have resulted in disappointing investment returns.
Key Changes to Capital Structure
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
There have been leadership changes at the Hamilton-based Dairy Goat Co-operative, which has been struggling financially in recent years.
Horticulture NZ chief executive Nadine Tunley will step down in August.
OPINION: The new government has clearly signalled big cuts across the public service.
OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…