Dairy exporter Fonterra’s new capital structure gets farmer approval
Adds details, background
December 9 (Reuters) – Fonterra FCG.NZ said on Thursday that its new capital structure had received the green light from its farmer shareholders, which would make it easier for new farmers to enter the cooperative as part of the strategy of reclaiming domestic market share.
The New Zealand-based dairy exporter, owned by its 10,000 farmer shareholders, said 85.2% of votes cast were in favor of the proposal that will limit non-farm investment in the Fonterra Shareholders Fund. FSF.NZ to protect the property and control of farmers.
“Changing our capital structure is the most important decision we have made as farmers in almost a decade,” Chairman Peter McBride said in a statement.
He first proposed the new shareholding structure in May and described a series of changes, including reducing the minimum supply requirement for farmer-owners to enter the cooperative.
The company said it is working with the government on the restructuring and aims to implement it as soon as possible from the start of next season.
The current cap on the Fonterra Shareholders Fund will remain under the new shareholder structure, Fonterra said.
(Reporting by Arundhati Dutta in Bengaluru; editing by Rashmi Aich)
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