The New Zealand dairy giant Fonterra Co-operative Group has said it plans to present its farmer shareholders with options for changing to its capital structure in September, but said it will make no further comment on what is being considered as part of the current review.
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The options to be put to shareholders are being drawn up through an ongoing review of the company’s structure, which is thought to be considering the possibility of some form of public listing.
The meeting, where the Fonterra management will propose its preferred option and alternative options, has been scheduled for 26 September. Fonterra, which is the world’s largest dairy exporter and has annual turnover of NZ$12bn (US$8.63bn), some 7% of New Zealand’s GDP, would need 75% approval from shareholders to alter its capital structure.
“We are going to stop communicating on where we are in the process other than to say we are going to take the next six months to assess all the options and all the implications of the options,” said chairman Henry van der Heyden.
“Our farmers are well aware that this is probably going to be the most important decision they make while they’re part of the dairy industry, more important than the foundation of Fonterra,” van der Heyden added.
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By GlobalData“The key thing is when we go forward on capital structure it will be our farmers that ultimately will have the final say.”
