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

 

Fonterra Must Look At All Options

5 October 2004

Fonterra Must Look At All Options

Fonterra Co-operative Group Ltd must carry out a detailed and robust study of all feasible options when reviewing its capital structure, said Kevin Wooding, Chairman of Dairy Farmers of New Zealand (DFNZ).

"For dairy farmers to have confidence that Fonterra's review is the best it can possibly be, Fonterra must be diligent and serious about looking at every possible option on the path to a better structure. Such a review will deliver the best outcome for Fonterra's farmer suppliers, the dairy industry, and the national economy," Mr Wooding said.

DFNZ today released the first of four independent discussion papers about Fonterra's capital structure and in particular the co-op's controversial fair value shares and much-criticised peak notes. DFNZ is the dairy industry group of Federated Farmers of New Zealand (Inc).

"We carried out this research because DFNZ wants to give its members independent, reliable and up-to-date information about Fonterra's capital structure. Our involvement will mean that we can help get the best possible outcome for the co-operative and farmer shareholders," Mr Wooding said.

"It is crucial that farmers are fully informed about the current framework and the pros and cons of alternative structures as the co-operative moves forward."

Mr Wooding said that Fonterra must put everything on the table during its review.

"Farmers are prepared to engage in meaningful dialogue on the issues, but will resist any attempt to foist unpalatable options on them after a period of Clayton's consultation. There must be no hidden agenda in the review.

"I have had a number of meetings with Fonterra and so far I am comfortable that it is approaching the review with integrity, and I look forward to it releasing a similarly detailed analysis of options for consideration by shareholders."

The first of the four discussion papers is available at www.fedfarm.org.nz/fonterra Temaining three will be released over the next seven weeks:

Paper one: The current structure (released today). Paper two: Strengths and weaknesses of the current structure (released October 26). Paper three: Factors to consider in a good capital structure (released November 8). Paper four: Potential options for a future capital structure (released November 22).

The staged release allows dairy farmers time to absorb the information in bites during a very busy period on their farm.

Mr Wooding said the papers were intended to inform and raise debate rather than say which option, if any, is best.

"DFNZ has not taken a position on a preferred option, or indeed if changes are the best option," Mr Wooding said.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>