Fonterra farmers holding back on selling dividend rights into new fund

Fri, 23 Nov 2012

By Paul McBeth Nov. 23 (BusinessDesk) - Just 260 of Fonterra Cooperative Group's farmer shareholders holding 5.5 million shares in the dairy exporter have sold their dividend rights into the shareholders' fund to be listed next Friday, with many waiting to see how it operates before taking the plunge. That represents about 0.4 percent of Fonterra's shares on issue, and means the cooperative will have to issue shares to make up the shortfall. The fund aims to raise up to $525 million to cover the dairy exporter's redemption risk in weak milki...

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