Demand for units in the Fonterra Shareholder Fund surged
yesterday, with $133 million worth of trading in the three
hours following the launch of Trading Among Farmers.
Fonterra units have been valued at the top of the range at
$5.50 each but demand is expected to push them up even
further when trading begins on the NZX on Friday.
Many farmer shareholders seem to be taking a "wait and see"
approach before selling economic rights of shares into the
Fonterra Shareholders Fund, the dairy co-operative says.
Fonterra's newly-acquired milk-processing plant at Studholme,
near Waimate, has already broken a record - producing 924
metric tonnes of whole milk powder in a week.
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.
Fonterra is continuing its expansion in China with the
purchase of two more big dairy farms in Hebei Province.
Trading Among Farmers could be the start of a "highly
innovative and exciting chapter" in Fonterra's history,
Federated Farmers dairy chairman Willy Leferink believes.
Units in Fonterra's Shareholders Fund, which will raise up to
$525 million, are expected to go on sale on November 5.
The high value of the New Zealand dollar has cost Fonterra's
farmer-shareholders about $1 billion in lost revenue,
Federated Farmers dairy spokesman Willy Leferink says.
Dairy co-operative Fonterra yesterday reported an improved
profit for the year ended June but a reduced payout for
farmers, with warnings already that next season's payout will
be even lower.
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