Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Shareholders’ Council Re-Appoints Valuer

31 August 2004

Shareholders’ Council Re-Appoints Valuer

The Fonterra Shareholders’ Council has re-appointed Standard & Poor’s Corporate Value Consulting (S&P) as the company’s valuer for the 2005/06 season. The Council is responsible for appointing an independent, qualified and reputable valuer to determine Fonterra’s Fair Value Range. S&P was originally appointed on a three-year contract in 2001 when Fonterra was formed. Following a performance review, the Council extended this contract for the 2005/06 season.

S&P independently values the shares and provides a valuation range to the Fonterra Board which sets the price of the shares for each season.

When deriving the FVS range, S&P considers Fonterra’s financial records and forecasts, interviews management, researches industry trends and the performance of comparable companies, and takes into account current financial, economic and market data. S&P uses this information to perform discounted cash flow analysis, which is the primary valuation method used. The valuation range is then cross-checked against comparable publicly traded shares, mergers and acquisitions.

Before the creation of Fonterra, shares in New Zealand dairy companies had nominal values, which often had little relationship to the underlying value of the company. The FVS was introduced under the Dairy Industry Restructuring Act and Fonterra’s Constitution to more accurately reflect the value of farmers’ investment in their company.

Shareholders’ Council chairman John Monaghan said: “Standard and Poor’s Corporate Value Consulting has developed a sound working knowledge of Fonterra and its businesses.

“The Shareholders’ Council will continue to monitor the independence of the relationship between the valuer and Fonterra’s Board of Directors on behalf of shareholders.”

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>

ALSO:

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

 
 
 
 
 
 
 
 
  • Bill Bennett on Tech