Share
- Release Date: 30/11/12 11:02
- Summary: GENERAL: FSF: Pricing Set for Trading Among Farmers Launch
- Price Sensitive: No
- Download Document 2.54KB
FSF
30/11/2012 09:02
GENERAL
REL: 0902 HRS Fonterra Shareholders' Fund (NS)
GENERAL: FSF: Pricing Set for Trading Among Farmers Launch
Fonterra Co-operative Group Limited announced today a Final Price for Units
in the Fonterra Shareholders' Fund of $5.50 per Unit.
The price - which was at the top end of the range provided in the Fund's
prospectus - was decided after institutional and NZX firms submitted their
bids for Units on 26-27 November.
Chairman Sir Henry van der Heyden said this was positive news for farmer
shareholders. Fonterra Shares on the Fonterra Shareholders' Market are
expected to track the price of Units in the Fonterra Shareholders' Fund when
trading starts this Friday.
Chief Executive Theo Spierings said: "Investors recognised there was some
complexity in the structure of Trading Among Farmers, but there was strong
acknowledgement of Fonterra's leading position and clear growth strategy.
"As a result of this strong level of interest, the Fund will launch at a size
of $525 million.
"More than 2,500 members of the 'Fonterra Family', as well as around 7,000
retail and institutional investors have taken up the opportunity to gain
exposure to the dairy sector and Fonterra's future successes.
"With an initial Fund size of $525 million, we have been able to ensure that
those eligible under the Friends of Fonterra and Bonlac Supply Company
categories will receive their requested amounts," said Mr Spierings.
A total 58 per cent of Units has been allocated to New Zealand retail and
institutional investors, as well as the Friends of Fonterra (including
Bonlac). The remainder has been allocated to institutions based offshore.
"We are pleased that the allocations reflect the Co-operative's objectives.
The majority of Units are held by New Zealanders. And we have a good balance
between retail investors who are more likely to hold onto their Units, and
professional offshore and New Zealand investors who are likely to actively
trade Units and provide liquidity in the Fund," said Mr Spierings.
Following the closure of the Supply Offer, Fonterra has confirmed it will
issue around 90 million Shares to the Fonterra Farmer Custodian. This will
support a Fund size of $525 million.
The issue of Shares by Fonterra would, at the most, affect the Co-operative's
Earnings per Share by about one cent. Fonterra does not intend to permanently
retain the resulting equity.
Mr Spierings said both the Fonterra Shareholders' Market and Fund were on
track to begin operating from Friday.
End CA:00230466 For:FSF Type:GENERAL Time:2012-11-30 09:02:28
