23 May 2013

Latest Fonterra share offer now closed

10:51 pm on 23 May 2013

Fonterra has closed off the latest offer to its farmer shareholders to sell the economic rights to some of their shares in return for cash.

Farmers had until 5pm on Thursday to decide and Fonterra will announce the outcome of the offer on Monday.

It allows farmers to deposit up to a quarter of the shares they hold to match their milk supply into the Shareholders Fund set up as part of Fonterra's TAF or trading among farmers scheme.

They will get the cash value, but give up the dividend rights, which are sold to outside investors who buy units in the fund.

The share price for the offer has been set at $7.92 a share, compared with $5.50 when the fund was launched late last year.

It attracted only a limited response from farmers at that time and more interest is expected this time.