The Fonterra Shareholders’ Fund will raise as much as $525 million selling shares in an indicative price range of $4.60 to $5.50 apiece, giving outside investors exposure to up to 7 percent of the dairy cooperative’s equity, offer documents show.
The final price will be set by a bookbuild among institutions and NZX firms on about Nov. 27.
Fonterra unveiled the prospectus for the fund aimed at providing liquidity for the Trading Among Shareholders scheme, one of the biggest overhauls of the dairy giant’s capital structure since its inception in 2001. . .
The agriculture sector is the least confident in the October National Bank Business Outlook which shows overall business confidence flat-lining.
A net 17 percent of respondents expect business conditions to improve in the year ahead, unchanged from last month. A net 25 percent in the agriculture sector are pessimistic, the lowest reading in the survey.
“The agriculture sector is the nucleus of our income generating capacity. So when the rural pulse keeps getting weaker we take note,” chief economist Cameron Bagrie said in his report.
Sentiment in the agriculture sector has been sliding for months because of the high New Zealand dollar, a lower dairy payout, nervousness about environment regulation and the leveling out of a production boost from good weather, he said. . .
Turners & Growers is removing about 20 hectares of kiwifruit orchards in the Kerikeri area after the bacterial vine disease Psa-V was detected on a single male “baker graft” vine in one of its orchards in the area.
Kiwifruit Vine Health has established a controlled area, which includes 102 orchards in the region.
Kerikeri is the eleventh region to be infected since PSA was first discovered in New Zealand two years ago. . .