Price set for Fonterra supply offer
Fonterra farmers have the opportunity to sell the economic rights for up to 25% of their “wet shares” ie shares backed by milk supply. Farmers will be paid $7.92 per share to give up any potential future dividends, but they would still retain voting rights and the right to supply milk. The $7.92 price was set based on the average of the daily price that Fonterra Shareholders’ Units were traded at during the period from 2 May – 15 May inclusive. Farmers have until 5pm on 23 May 2013 to confirm if they wish to participate in the supply offer.