Fonterra staying mum on China stake report

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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