Fonterra seeks strong farmer mandate for sale
Fonterra chair Peter McBride expects a strong mandate from farmers shareholders for the proposed sale of its consumer and related businesses to Lactalis for $3.8 billion.
For Fonterra to move forward with TAF, the board had to be satisfied that five preconditions were met. The fifth TAF precondition was the support of at least 50% of the Shareholders Council.
Council chair, Ian Brown says there was 97% support for the resolution and this reflected the confidence the Council had in the new capital structure.
"The council's support for the preconditions, which are underpinned by 100% farmer ownership and control, signal that they have reached the standards set by the council on behalf of our farmer shareholders."
Brown says the council has undertaken a robust and fully independent two-year review process to ensure farmers' interests were paramount in the construction and design of TAF.
"From the outset the council viewed 100% farmer shareholder ownership and control as a non-negotiable and that any change to the capital structure had to be an enduring one.
"To ensure this was the case the council engaged the services of a number of external advisors who worked to review all aspects of TAF from a farmers' perspective. We are confident that the protections contained within TAF will preserve 100% farmer shareholder ownership and control and that the TAF model before us will provide the cooperative with stability for years to come."
