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
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