Ex­perts hired to help farmer trad­ing plans

South Waikato News - - RURAL DELIVERY -

Fon­terra has ap­pointed ad­vis­ers to pro­vide spe­cial­ist ex­per­tise and guid­ance on the next steps in its cap­i­tal struc­ture changes.

Fon­terra chief fi­nan­cial of­fi­cer Jonathan Ma­son said Fon­terra had used ex­ter­nal ad­vis­ers to as­sist it in de­vel­op­ing the ini­tial pro­posal for Trad­ing Among Farm­ers.

Mr Ma­son con­firmed that Fon­terra was work­ing with ex­ter­nal ad­vis­ers with spe­cific cap­i­tal mar­kets ex­pe­ri­ence, in­clud­ing First NZ Cap­i­tal-Credit Suisse and Deutsche Bank-Craigs In­vest­ment Part­ners.

‘‘We will be ac­cess­ing pro­fes­sional ad­vice from a range of ad­vis­ers as we move through the var­i­ous stages lead­ing up to the in­tro­duc­tion of Trad­ing Among Farm­ers,’’ said Mr Ma­son.

‘‘This spe­cial­ist ex­per­tise will be es­sen­tial as the co­op­er­a­tive de­vel­ops the tech­ni­cal de­tails for a new Fon­terra Share­hold­ers’ Mar­ket and Fon­terra Share­hold­ers’ Fund.’’

Fon­terra has also ap­pointed NZX to help de­sign the trad­ing plat­form for the Fon­terra Share­hold­ers Mar­ket.

‘ ‘ The farmer-only ex­change for trad­ing shares, which will op­er­ate on the Fon­terra farmer in­tranet (Fen­ce­post), will be unique and will be built from scratch,’’ Mr Ma­son said.

‘‘Fon­terra will be us­ing NZX in much the same way as we used CRA to de­sign glob­alDairyTrade.’’

NZX was ap­pointed through a con­testable process and was cho­sen be­cause of its ex­pe­ri­ence in de­sign­ing and build­ing trad­ing mar­kets, as well as its knowl­edge of lo­cal con­di­tions and the lo­cal reg­u­la­tory en­vi­ron­ment.

‘ ‘ The de­tails of how Trad­ing Among Farm­ers will work in prac­tice are still at a pre­lim­i­nary de­sign stage and it is too early to spec­u­late on what shape the mar­ket will take,’’ Mr Ma­son said.

Fon­terra farmer share­hold­ers en­dorsed changes at a spe­cial meet­ing in June that au­tho­rised the co­op­er­a­tive to take the nec­es­sary next steps to de­velop the de­tails to al­low Trad­ing Among Farm­ers.

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