Press Release – Fonterra Today Fonterra is starting a consultation process to seek farmer feedback on potential options to change its capital structure that could give farmers greater financial flexibility. To allow its farmers to have open conversations and consider all options …
Today Fonterra is starting a consultation process to seek farmer feedback on potential options to change its capital structure that could give farmers greater financial flexibility.
To allow its farmers to have open conversations and consider all options during consultation, the
Co-operative is temporarily capping the size of the Fonterra Shareholders’ Fund (the Fund) by suspending shares in the Fonterra Shareholders’ Market (FSM) from being exchanged into units in the Fund.
Fonterra shake-up suspends trading between farmers and sharemarket stuff.co.nz - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from stuff.co.nz Daily Mail and Mail on Sunday newspapers.
Dairy giant Fonterra has laid out a range of options to strengthen its financial structure, but remains committed to co-operative ownership.
Chairperson Peter McBride says the capital structure review aimed to ensure the sustainability of the co-operative into the future.
Photo: RNZ / Rebekah Parsons-King
The country s biggest company said the aim was to balance farmer ownership, milk supply, and secure its financial future.
Among the options put out were dual share structures to allow outside involvement, splitting the co-op between supply and processing businesses, and different classes of shares.
Chairperson Peter McBride said the capital structure review aimed to ensure the sustainability of the co-operative into the future.
Thursday, 6 May 2021, 9:27 am
Today Fonterra is starting a consultation process to seek
farmer feedback on potential options to change its capital
structure that could give farmers greater financial
flexibility.
To allow its farmers to have open
conversations and consider all options during consultation,
the
Co-operative is temporarily capping the size of
the Fonterra Shareholders’ Fund (the Fund) by suspending
shares in the Fonterra Shareholders’ Market (FSM) from
being exchanged into units in the Fund.
This temporary
cap will be effective once the current trading halt is
lifted when the market opens tomorrow and will remain
throughout the consultation process.
Chairman Peter
What will Fonterra come out with for its capital restructure?
5 May, 2021 05:40 AM
4 minutes to read
Fonterra share trading in halt until Friday. Photo / File Fonterra s capital restructure proposals, due to be revealed today, have been kept surprisingly watertight considering it has 10,000 heavily invested and involved farmer-shareholders, but it s a safe bet the main thrust will be measures to stop milk supply loss by demanding less capital from its farmers.
This New Zealand s biggest company and the world s fourth largest dairy company by revenue could do by making it less costly to join and supply milk to the big farmer-owned co-operative.