Fonterra’s directors have been given the green light from the dairy giant’s farmer owners to launch share trading among farmers (TAF).
The Fonterra Shareholders’ Council, a farmer watchdog, said it had overwhelmingly supported a resolution to pass the fifth and final TAF precondition, providing the board a mandate to proceed with the launch of TAF.
Fonterra chairman Sir Henry van der Heyden this week suggested TAF – which will involve a public listing of units in Fonterra’s farmer-owned shares – would launch on schedule in late November.
But in order for Fonterra to move forward with TAF its board had to be satisfied that five preconditions were met.
The fifth TAF precondition was the support of at least 50 per cent of the council.
Council chairman Ian Brown said there was 97 per cent support.
Fonterra’s 10,500 farmer owners voted more than two years ago in support of the TAF concept, but progress on the capital restructure got bogged down in debate and farmer fears of losing 100 per cent control and ownership of the co-operative.
Opponents forced a second vote earlier this year which saw just over 60 per cent of farmers support TAF, which is designed to provide Fonterra with permanent capital and release it from its current obligation to trade its farmers’ shares.
Source: Stuff