Shareholders to decide on Fonterra structure

22 October 2009

Shareholders to decide first two parts of Fonterra’s capital structure review

Fonterra’s member-shareholders are to be given the right to determine the outcome of the cooperative’s capital structure review, with the detailed proposal being sent out to shareholders at the end of the month.

“There are three things members need to absolutely do over the next few weeks,” says Willy Leferink, Federated Farmers Dairy vice-chairperson.

“First is to open and read Fonterra’s proposal documents, which will be sent out from Fonterra on Friday week.

“Second is to attend one of the 40 additional meetings being held over 9-11 November. Getting the full facts means being informed and empowered and that will get farmer buy-in.

“No doubt there will be a number of informal meetings too. It’s important any questions are channelled direct to Fonterra, the Shareholders’ Council or through your provincial Federated Farmers Dairy chairperson.

“The third and most obvious thing is to vote. The first two proposals are about strengthening Fonterra’s share structure and the restricted share value.

“While there have been small changes to the proposals as a result of consultation to date, the nature of these changes cannot be disclosed, I understand, until the proposal is issued.

“While a cooperative, we still have to operate under the strictures of the Securities Act.

“Until the full nature of the proposals are known, Federated Farmers is not in a position to voice more of an opinion. That said, Fonterra has busted a gut to communicate to and meet with Federated Farmers and all members of the cooperative.

“I personally think that effort needs to be recognised and applauded.

“With more than one-third of members turning out to meetings to date, I think it demonstrates the high level of interest in the future of our cooperative. If you are in dairying, this cooperative is your future,” Mr Leferink concluded.

ENDS

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