onterra Confirms Supply Offer Dates

30 April 2013
Fonterra Confirms Supply Offer Dates
Fonterra Co-operative Group Limited today confirmed that a Supply Offer enabling farmer shareholders to sell the economic rights of some of their shares will open on 2 May and close at 5pm on 23 May.

Farmer shareholders will have the opportunity to offer to sell the economic rights of up to 25 per cent of their minimum required shares (‘Wet Shares’) to the Fonterra Shareholders’ Fund.

The price farmers will receive for their economic rights (the “final price”) will be announced on 16 May. It will be calculated by reference to the average daily sales prices on the NZX for Fonterra Units for each trading day between 2 – 15 May inclusive.

Farmer shareholders will then have a further week after the final price has been announced to confirm if they wish to participate in the Supply Offer before it closes.

”We encourage those considering their options to seek independent financial advice,” said General Manager - Trading Among Farmers, Aaron Jenkins.

A Supply Offer booklet and Supply Offer form are being mailed to all farmer shareholders this week. They are also available online at www.fonterrasupplyoffer.com from 2 May.

The outcome of the Supply Offer will be announced on 27 May, and farmer shareholders who participate in the offer will receive payment for any economic rights to Wet Shares that they sell by 6 June.

In net terms the Offer will not affect the total number of Units on issue and the Fund size will not increase. Fonterra will purchase the units that arise as a result of the Supply Offer, using the $475 million raised at the launch of Trading Among Farmers, and subsequently redeem them for Fonterra shares.

- ENDS -

© Scoop Media