Farmers in Fonterra for long haul

Friends of Fonterra have shown strong interest in buying investment units in the company.

In an email to shareholders Sir Henry van der Heyden says that more than 2,500 people have applied to buy Units under the Friends of Fonterra offer.

o Nearly 900 farmer shareholders
o Nearly 200 sharemilkers
o About 70 retired farmers
o More than 1,300 staff
• Further 260 Australian dairy farmer suppliers also applied for Units

Only about 260 farmers offered to sell Economic Rights of around 5.5 million shares into the fund which means the board will top up the fund to $500m.

This shows that farmers have faith in the company, are with it for the long run and have confidence that they’ve more to gain by holding on to their shares than the short-term profit from selling them.

 

One Response to Farmers in Fonterra for long haul

  1. Bruno32 says:

    It also shows that the friends of fonterra could have helped with redemption risk. The creators of TAF need to take a deep breath and think about what they have created and the real reasons why.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: