Fonterra, the New Zealand dairy group, has announced plans to to raise up to NZ$525m (US$416m) for a new shareholder trust.
The Fonterra Shareholders’ Fund, revealed today (26 October), is designed to give third-party shareholders exposure to the business for the first time through the purchase of units.
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The fund will be listed on both the New Zealand and Australian stock exchanges, with a float expected late next month.
Fonterra chairman Sir Henry van der Heyden said the fund would also allow farmer shareholders to trade shares among themselves with “a more flexible structure”, rather than buying and redeeming them from the co-operative.
“This will provide permanent capital for Fonterra and reduce redemption risk, while preserving 100% farmer control and ownership of the co-operative,” Van der Heyden said.
“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.”
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By GlobalDataThe indicative price range for units in the fund is NZ$4.60-5.50. The final price payable per unit is expected to be announced on or about 27 November.
