Fonterra says no to Norgate's offer

Tuesday 1st June 2004

Fonterra says that its subsidiary RD1 would reject the revised offer of $1.65 per share for its 19.2% stake in Wrightson.

Fonterra's chief financial officer, Graham Stuart said Fonterra had examined Rural Portfolio Investments' higher offer and believed it would receive a better return on its investment in Wrightson by continuing to hold its shares.

"Wrightson has a track record of delivering good returns to shareholders and has consistently performed well," Stuart said.

"Shareholders have experienced steady share price appreciation and a very strong dividend yield. As an investor you can not ask for much more."

Stuart said Fonterra saw further consolidation in the agricultural service sector as inevitable and believed that Wrightson was well-placed to benefit from such change. As had been indicated previously Fonterra was currently in discussion with Wrightson about opportunities for the future.

"As the corner stone shareholder in Wrightson, Fonterra will therefore hold its position and reject this latest offer," he said.

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