Shares’ economic rights sold
This year’s drought is thought to have considerably sharpened Fonterra farmershareholders’ appetite for the company’s offer to sell the economic rights to their shares with about 20 per cent taking up the supply offer.
New Zealand’s largest company has confirmed that its farmers offered to sell 75,223,742 economic rights of ‘‘wet’’ or milk supply shares in this month’s offer, totalling a value of nearly $566 million.
The final purchase price for the offer was $7.92. It closed on Thursday last week.
Fonterra chairman John Wilson said the level of demand meant the offer would be scaled with Fonterra buying 79.7 per cent of the economic rights each farmer shareholder offered to sell.