Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
Ian Brown, who heads the council tasked with safeguarding the interests of the dairy cooperative's 10,500 Shareholders, says it was an historic day for Fonterra Shareholders.
"Our farmers have always been leaders and this is another example of them being heavily involved in an innovative step forward for our industry."
The Farmer Shareholder Supply Offer invites Fonterra farmer Shareholders to consider the opportunity to sell the economic rights of some of their shares to the Fonterra Shareholders' Fund and the Prospectus and Investment Statement for the Fund allows the public to consider buying Units in the Fund.
"The offer is the first step in launching Trading Among Farmers which is designed to provide farmers with increased flexibility in running their businesses," Brown says.
"Also, by ensuring our co-op has permanent capital Fonterra will be able to make the most of opportunities, identified in the Strategy Refresh, to improve shareholder returns."
Brown says it is important to emphasise that the offer provided an opportunity to invest in units issued by the Shareholders' Fund – not to buy Fonterra shares.
"Voting rights and shares have and will always be linked to milk production, this principle is rock solid and a lot of hard work has been done over the past two-plus years to ensure 100% supplying shareholder ownership and control of Fonterra is secured.
"What the offer opportunity does present is the chance for investors to engage with Fonterra like never before and I believe this can only be a good thing for our co-op."
Brown says it is important that shareholders do their own due diligence on the offer before them.
"I encourage shareholders to read the Prospectus and Investment Statement for the Fund and the Farmer Shareholder Supply Offer Booklet and seek advice from your advisors before progressing further."
