Fonterra will not comment on a report out of Beijing that
China Investment Corp is seeking a stake in the Fonterra
Shareholders Fund, which is still in its formative stages, a
spokesman for the co-operative says.
The Wall Street Journal said China Investment Corp was in
talks with Fonterra about investing in the fund as the
sovereign-wealth fund sought overseas investments tied to
China's growth prospects.
The co-operative is still in the throes of getting its
Trading Among Farmers (TAF) share trading scheme under way.
TAF will involve creating a shareholders' fund, which will
allow non-farm investors access to the co-operative's
dividend flow but will not allow investors to gain voting
rights.
The fund, which is expected to be worth not less than $500
million, has already attracted heavy investor interest, and
brokers have severely scaled back applications for units.
Fonterra expects the fund to list on the ASX and NZX on
November 30.
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