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

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news