The dairy products manufacturer has upped its earnings guidance on strong dairy and protein momentum, raising share earnings to between NZ 50 cents and NZ 70 cents.
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Fonterra Shareholders Fund growth threat to farmer control even if they can t vote: Chairman
12 May, 2021 05:35 AM
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Fonterra board aiming for November shareholder vote on capital restructure. Photo / File
The Fonterra Shareholders Fund does not have voting rights in New Zealand s biggest business, but it does have influence, which is a form of control, says chairman Peter McBride. The greater the size of the fund, the greater the level of influence it can bring to bear on the co-operative s leadership.
Fonterra farmer-shareholders and unitholders had different ideas about risk and value, he said.
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McBride was responding to an argument against axing or capping the $500 million Fonterra Shareholders Fund, in which the non-farming public can invest through buying units in farmer shares.
Is Fonterra shooting itself in the foot with proposal to axe shareholders fund?
9 May, 2021 05:00 PM
5 minutes to read
Fonterra shareholders mulling big capital structure change proposal. Photo / File
Part of Fonterra leaders preferred proposal for a major capital restructure risks undermining the very thing they are seeking to achieve - securing an economic lifeblood milk supply. That s the view of Jarden investment bank head of institutional research Arie Dekker, who believes the two prongs of thinking behind directors favoured proposal don t go naturally together .
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Farmers must buy shares to supply milk to Fonterra, New Zealand s biggest business.
Faced with the threat of falling milk supply, the board is proposing making the capital requirements on farmers more flexible, by relaxing the share standard from one share for every kilogram of milk solids supplied, to one share for 4kg.
Fonterra capital structure rejig to speed through Parliament, Damien O Connor says
7 May, 2021 05:40 AM
5 minutes to read
Agriculture Minister Damien O Connor has been a vocal critic of Fonterra s capital structure. Photo / File
Agriculture Minister Damien O Connor has been a vocal critic of Fonterra s capital structure. Photo / File
Agriculture Minister Damien O Connor says he will assist Fonterra s board in speeding through change needed to dairy industry law to accommodate a capital restructure. Fonterra s board hopes to put a proposal for significant capital structure change to a vote by the company s farmer-owners around November annual meeting time, but it will also require an amendment to the Dairy Industry Restructuring Act (Dira) which oversees New Zealand s biggest business and the $10 billion dairy industry.