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.