Fonterra Announce Interest in Shareholder Scheme26 November 2012
NEW ZEALAND - Fonterra Co-operative Group Limited have confirmed strong interest from farmers and staff in buying Units in the Fonterra Shareholders’ Fund but said many farmer shareholders seemed to be taking a “wait and see” approach before selling Economic Rights of Shares into the Fund.
The Co-operative said more than 2,500 people had applied to buy Units under its Friends of Fonterra Offer. This is made up of:
- Nearly 900 farmer shareholders
- Nearly 200 sharemilkers
- About 70 retired farmers
- More than 1,300 staff
A further 260 Australian dairy farmer suppliers had also applied for Units in the Fund.
Each person has applied for differing amounts of Units and the number of Units each applicant will ultimately receive will be confirmed after the bookbuild process is completed and the final price is announced next week.
Fonterra Chief Executive Theo Spierings said the result showed strong support for Units among farmers and staff.
“Trading Among Farmers is all about strengthening the Co-operative and providing it with permanent capital for the future – it’s great to see these levels of support from our Fonterra family.
“We see it as a vote of confidence in the Co-operative from some of the people who know it best.
On the Supply side, about 260 farmer shareholders had offered to sell Economic Rights of around 5.5 million Fonterra Shares into the Fonterra Shareholders’ Fund.
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TheCattleSite News Desk