Fonterra Announces Supply Offer Result
27 May 2013
Announces Supply Offer Result
Fonterra Co-operative Group today confirmed that farmer shareholders offered to sell 75,223,742 economic rights of Wet Shares in this month’s Supply Offer, amounting to a total value of $595,772,036.64.
The high level of demand means the Offer will be scaled. Fonterra will buy 79.7284 per cent of the economic rights each farmer shareholder offered to sell.
Chairman John Wilson said about 20 per cent of Fonterra’s farmers took advantage of the opportunity to release some of the value of their shareholding, providing more flexibility for their businesses.
“A significant number of farmer shareholders have thought through the potential benefits of using the additional flexibility provided by the changes made to our capital structure last year.
“Some have indicated they will use the Offer proceeds to fund further growth of their farming businesses, while others are saying they will relieve some of the cash flow pressure after this year’s drought,” said Mr Wilson.
The Supply Offer will
not increase the current size of the Fonterra
Shareholders’ Fund. Fonterra is purchasing the Units
that arise as a result of this Supply Offer and will then
redeem them for Fonterra Shares, which means that the Offer
will not affect the total number of Units on issue.
- ENDS -