Friday, July 1, 2022

Fund units regain some ground

Fonterra Shareholders’ Fund units tumbled to the lowest level this year, leading a decline in dairy-related companies on the NZX, amid investor concern earnings will suffer from the discovery of bacterial contamination in batches of whey protein.

Units of the fund, which give investors access to the dividends from Fonterra’s shares, fell 8.6% to $6.51 on Monday, erasing more than $60 million from its market value. The units have since recovered somewhat, with shares now trading at $7.020 apiece.

The units were sold in an initial public offering in November at $5.50 apiece.

 

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