Fonterra to return $490 mln to shareholders
The company has been trying to reduce its debt
12 June 2023
1 minute read
By: New Zealand's Fonterra Co-operative Group on Monday said it received initial orders from the High Court, approving its proposal to return about NZ$800 million ($489.76 million) of capital to shareholders and unit holders, reported Reuters.
The orders come after the dairy giant in March said it would reduce its debt and return around 50 New Zealand cents per share and unit of about NZ$800 million after the completion of the sale of Chilean operations, Soprole.
The dairy exporter said the approval will result in repurchase and cancellation of one in every six shares held by each shareholder in the company and they will receive NZ$3 for each.
The scheme will not impact shareholders' stakes in the company as shares which will not be repurchased will by subdivided into the into number of ordinary shares bought back by the company, Fonterra added.
($1 = 1.6335 New Zealand dollars)
