Fonterra moves ahead with stock offer

New Zealand’s giant dairy cooperative, Fonterra will open up to non-farm owners next month when they offer shares in a shareholders fund. The co-op seeks to raise $500 million (NZ) from the sale. In a prospectus published Friday, Fonterra says the shares will sell for between $4.60 and $5.50 (NZ). The final price will be established by an auction-style book building process and will be announced on November 27th with listing on the New Zealand Exchange set for November 30th.

There will be two components to the deal; a Shareholders Fund will be available to the public while the Shareholders Market will be only for farmers. Farmers will be able to trade shares with other farmers within the Shareholders Market. Farmers will be able to place shares within the Shareholders Fund and sell the rights to dividends and changes in market value but retain the voting rights.

The co-op is New Zealand’s biggest company and is valued at between $10.8 and $12.3 billion (NZ). Fonterra is the largest dairy cooperative in the world

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