The shareholders of diary co-operative Fonterra have given their nod for the proposed capital restructure to be carried out by the firm. The resolution for restructuring was passed with the votes of 90 per cent stakeholders, paving a way for Fonterra to issue shares for raising funds worth $1 billion.
Only a handful of stockholders opposed the move to offer 20 per cent more shares to the farmers.
Hailing the shareholder’s confidence in the firm, Fonterra Chairman Sir Henry said that it would prove very beneficial for the growth of the dairy co-operative. Mr. Henry added, “Shareholders have told us they wanted to retain 100% control and ownership. They said give us the opportunity to back our co-operative."
Meanwhile, Fonterra’s shareholders’ council also welcomed the strong support to the restructuring plans and the Council Chairman Blue Read has given full assurance of support in every constructive move by Fonterra, the biggest company in New Zealand.
It should be recalled that Fonterra reported huge losses when draught grappled the region by adversely affecting milk supply.