Fonterra is being called on to open investment opportunities to institutional investors after only a third of its 10,500 shareholders responded to a call to buy extra shares.
The low turnout has been put down to cash-strapped farmers and is another knock-back to Fonterra’s effort to raise capital for expansion while keeping control of the country’s largest exporter in farmer hands.
Of the 10,500 shareholders, around 4000 of which farm in the Waikato, 3461 bought extra shares and raised $270.7 million for the dairy co-operative’s growth strategy. Only 59 farmers cashed in surplus shares as a result of a drop in milk production caused by dry weather in the North Island.
Morrinsville farmer Lloyd Downing called for the co-operative’s constitution to be modified to allow external investment from the likes …
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Tags: Fonterra, new zealand, NZ Invest, NZ Investment
