Fonterra ownership structure 'not on the table', says director

Fonterra Cooperative Group won't be changing its ownership structure, but is keen on bringing on partners to fund future projects, says director Scott St John.
Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email

The Auckland-based company’s capital structure has been criticised as making it too hard to raise equity and led to a poor track record of adding value from investments, with one of its harshest critiques coming from First NZ Capital analyst Arie Dekker.
Units in the Fonterra Shareholders’ Fund, which gives investors exposure to the cooperative’s earnings stream, fell to a three-year low last week after the dairy company’s board trimmed its forecast payout to farmers and said it probably won’t pay a final dividend.
Fonterra director St John, a former chief executive of FNZC, put forward the dairy company’s case to the New Zealand Shareholders’ Association annual meeting in Auckland today, saying the payout cut was a tough decision, but «the right call to make» and one he would do again.
He gave a potted history of the 17-year-old company, saying its growing expansion in China and successful development of higher value food ingredients products showed it had been successful.
Still, he accepted some of the challenges facing the company had got «the better of us».
St John didn’t agree with a question from the floor that Fonterra’s 10,500 farmer-shareholders were reluctant to be fully shared up, and said changing the ownership structure «is just not on the table».
He did, however, say the company needs «to think carefully and innovatively how we fund the projects we enter into.»
St John said the recent Indian joint venture with Future Consumer Ltd to produce consumer and food service producers was «probably more likely to be the sort of thing you see us doing.»
The Fonterra director was among a line-up of speakers including Finance Minister Grant Robertson, Westpac New Zealand chief economist Dominick Stephens, SkyCity Entertainment Group chief executive Graeme Stephens and Sanford CEO Volker Kuntsch.
By:
Source: News Talk ZB
Link: https://www.newstalkzb.co.nz/news/business/fonterra-ownership-structure-not-on-the-table-says-director-scott-st-john/

G
M
T
Detect language
Afrikaans
Albanian
Amharic
Arabic
Armenian
Azerbaijani
Basque
Belarusian
Bengali
Bosnian
Bulgarian
Catalan
Cebuano
Chichewa
Chinese (Simplified)
Chinese (Traditional)
Corsican
Croatian
Czech
Danish
Dutch
English
Esperanto
Estonian
Filipino
Finnish
French
Frisian
Galician
Georgian
German
Greek
Gujarati
Haitian Creole
Hausa
Hawaiian
Hebrew
Hindi
Hmong
Hungarian
Icelandic
Igbo
Indonesian
Irish
Italian
Japanese
Javanese
Kannada
Kazakh
Khmer
Korean
Kurdish
Kyrgyz
Lao
Latin
Latvian
Lithuanian
Luxembourgish
Macedonian
Malagasy
Malay
Malayalam
Maltese
Maori
Marathi
Mongolian
Myanmar (Burmese)
Nepali
Norwegian
Pashto
Persian
Polish
Portuguese
Punjabi
Romanian
Russian
Samoan
Scots Gaelic
Serbian
Sesotho
Shona
Sindhi
Sinhala
Slovak
Slovenian
Somali
Spanish
Sundanese
Swahili
Swedish
Tajik
Tamil
Telugu
Thai
Turkish
Ukrainian
Urdu
Uzbek
Vietnamese
Welsh
Xhosa
Yiddish
Yoruba
Zulu
Afrikaans
Albanian
Amharic
Arabic
Armenian
Azerbaijani
Basque
Belarusian
Bengali
Bosnian
Bulgarian
Catalan
Cebuano
Chichewa
Chinese (Simplified)
Chinese (Traditional)
Corsican
Croatian
Czech
Danish
Dutch
English
Esperanto
Estonian
Filipino
Finnish
French
Frisian
Galician
Georgian
German
Greek
Gujarati
Haitian Creole
Hausa
Hawaiian
Hebrew
Hindi
Hmong
Hungarian
Icelandic
Igbo
Indonesian
Irish
Italian
Japanese
Javanese
Kannada
Kazakh
Khmer
Korean
Kurdish
Kyrgyz
Lao
Latin
Latvian
Lithuanian
Luxembourgish
Macedonian
Malagasy
Malay
Malayalam
Maltese
Maori
Marathi
Mongolian
Myanmar (Burmese)
Nepali
Norwegian
Pashto
Persian
Polish
Portuguese
Punjabi
Romanian
Russian
Samoan
Scots Gaelic
Serbian
Sesotho
Shona
Sindhi
Sinhala
Slovak
Slovenian
Somali
Spanish
Sundanese
Swahili
Swedish
Tajik
Tamil
Telugu
Thai
Turkish
Ukrainian
Urdu
Uzbek
Vietnamese
Welsh
Xhosa
Yiddish
Yoruba
Zulu
Text-to-speech function is limited to 200 characters

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

Te puede interesar

Notas
Relacionadas