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

 

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news