Fonterra Announces Share Initiative30 October 2012
NEW ZEALAND - Fonterra has outlined details of a unique opportunity for the public to participate in the co-operative's performance with the release of an offer document for the Fonterra Shareholders' Fund.
Chairman, Sir Henry van der Heyden, said that for the first time in Fonterra’s history, and with Farmer Shareholders’ support, members of the public will be able to gain exposure to New Zealand’s largest company and the world’s largest dairy processor by buying Units in the Fonterra Shareholders’ Fund.
Fonterra unveiled details of two key components to support Trading Among Farmers:
- The Supply Offer booklet inviting Fonterra Farmer Shareholders to sell the economic rights of a portion of their shares to the Fonterra Shareholders’ Fund.
- The Offer Document (a registered prospectus and investment statement dated 26 October 2012) inviting the public to gain exposure to the Co-operative’s performance by purchasing Units in the Fonterra Shareholders’ Fund.
“It is a historic day for the Co-operative. The Fund provides a unique opportunity for the public to gain exposure to the financial performance of Fonterra and the global dairy industry.
“Farmer Shareholders and Unit Holders will invest in the performance of Fonterra through separate structures. What they both have in common is the chance to be part of the continuing performance of our Co-operative – a New Zealand success story,” added Sir Henry.
Willy Leferink, Federated Farmers Dairy chairperson says, "Given debt pressures facing some farmers, selling down a percentage of their economic interest in Fonterra, no more than seven percent, could be attractive. It is an option that has never existed before and I think some farmers will take it up.
Mr Leferink concluded,"Being the ‘union'...our role in this world-first is to watch out for how this benefits our members individually. I am optimistic but as we start out on this journey we must ensure it doesn't lead somewhere unexpected."
For more comment from Willy Leferink click here
TheCattleSite News Desk