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

 


Fonterra units priced at $5.50, top end of range

Fonterra units priced at $5.50, top end of range, with 42% sold offshore

Nov. 27 (BusinessDesk) - Fonterra Cooperative Group priced its units at $5.50 apiece, the top end of the range proposed in a bookbuild, with strong global demand ensuring 42 percent of the fund has been sold to overseas investors.

Units in the $525 million Fonterra Shareholders’ Fund are scheduled to begin trading on the NZX at noon on Friday, giving liquidity to the Trading Among Farmers scheme that ends the company’s annual redemption risk and gives more certainty to its balance sheet.

The indicative range for the units was indicative price range $4.60 to $5.50 and the price was set after a bookbuild by institutions and NZX firms. Some 58 percent of the units were allocated to New Zealand retail and institutional investors and the class of investors known as Friends of Fonterra, which includes Australia’s Bonlac. The rest were sold to offshore institutions.

“We have a good balance between retail investors who are more likely to hold onto their units, and professional offshore and New Zealand investors who are likely to actively trade,” said chief executive Theo Spierings. “There was strong acknowledgement of Fonterra’s leading position and clear growth strategy.”

Fonterra will issue about 90 million shares to the Fonterra Farmer Custodian to make up the shortfall of shares offered into the fund by Fonterra’s farmers. The issue of new shares would dilute earnings per shares by only about 1 cent and the company doesn’t intend to permanently retain the resulting equity, it said.

Holders of the units are entitled to the dividends but not the voting rights of Fonterra shares, with farmers concerned to ensure they retained control of the company.

More than 2,500 members of what it called the ‘Fonterra Family’ and about 7,000 retail and institutional investors took up the units. Among offshore parties reportedly keen to hold the units was China’s sovereign wealth fund, the US$400 billion China Investment Corp.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news