Fonterra units $5.50

An email to shareholders from Fonterra chair Sir Henry van der Heyden says the final price of units in the company’s  Shareholders’ Fund is $5.50.

That is at the op end of the price range in the fund prospectus.

Shares on the Fonterra Shareholders’ Market are expected to tract the price of units in the fund when trading starts on Friday.

The fund will launch at $525 million following strong investor interest.

This means eligible farmers, sharemilkers, and retired farmers will get their requested amounts under Friends of Fonterra

There are more than 9,500 investors in the fund  which meets the company’s  goals for liquidity in the unit market

More than half – 58% – of the units  allocated went to New Zealand retail and institutional investors, and Friends of Fonterra (including Bonlac)

The rest were allocated to offshore institutions

The board will issue around 90 million Shares to the Fonterra Farmer Custodian to support the fund size of $525 million

The impact  on earnings per share is about one cent per share at most.

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