Fonterra, the world's biggest dairy exporter, has scaled back its offer to farmer shareholders to sell the economic rights of their shares into the Shareholders' Fund.
The NZX-listed Fonterra Shareholders' Fund, which gives outside investors access to the dairy exporter's dividend stream, will buy almost 60 million so-called 'wet' shares worth $475 million at $7.92 apiece, with those new units sold to Fonterra and redeemed for shares, the cooperative said in a statement. That means the supply offer won't affect the number of units on issue in the fund.
Fonterra received offers of some 75.2 million 'wet' shares worth $595.8 million, and scaled it back to the maximum amount. The transfer will take place on May 30.
Units in the fund sank 1.5 per cent to $7.84 on Friday, and have gained 11 per cent this year.