Revamp needed: A Fonterra milk tanker driving past dairy cows in Hamilton. The company is concerned that stagnant milk supply will result in the fund becoming too large, jeopardising farmers’ control. — Reuters
AUCKLAND: Fonterra Cooperative Group, the world’s biggest dairy exporter, is proposing an overhaul of its capital structure that may see its New Zealand farmer-shareholders buy back the listed Fonterra Shareholders’ Fund.
The fund, which has a market capitalisation of around NZ$493mil (US$356mil or RM1.4bil), would either be capped or bought back under the Fonterra board’s preferred option, the Auckland-based dairy giant said.
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