Dairy Equity has lowered the price of its remaining investments in Fonterra fair value shares as it winds up the business.
The company today advised it had contracted to sell most of its remaining investments in the Fonterra fair value shares to a consortium put together by Craigs Investment Partners.
The consortium also had an option to buy the balance of Dairy Equity's Fonterra investment, which was in a single SWAP agreement, once Dairy Equity had resolved a legal dispute in respect of that agreement.
Dairy Equity chairman Peter Jensen said that the sale was at a price equivalent to $2.75 per fair value swap share, 25c per share below earlier expectations.
Now the company had sold most of its remaining Fonterra assets, it could continue with the orderly winding up of the Dairy Equity business, Mr Jensen said.
That process would include at least two separate distributions to Dairy Equity shareholders, with the first, a payment of 6.25c per share, to be made in April.
A final distribution around 1.5cps would be made when winding up was finished and once all affairs of the business were concluded, he said.
If the expected distributions were made, the total level of net distributions made by Dairy Equity since inception would be in the order of 43cps, or 86 percent of the initial 50c subscribed for in the company's initial public offering.
