Chair Peter McBride says the most common questions from subsequent consultation have been the impact on share prices now and in the future with a farmer-only share market.
Opinion was divided on the capital impact of buying back the Fonterra Shareholders’ Fund (FSF) units. Farmers would also like more information on company performance and future earnings, which will be provided.
Fonterra was also reconsidering the share standard parts of the proposal, initially proposed at 1-for-4.
“We are reconsidering what settings strike the right balance between flexibility and alignment of interests between shareholders,” he said.
McBride explained the effects of market uncertainty on the current market values of both supply shares and FSF units.
“The current share price and volatility is reflective of the period of particularly unusual trading during this consultation phase,” he said.
Consultation would be extended for two weeks, after which a detailed, revised proposal would be published followed by a second round of consultation.
