Fonterra responds to Castalia report

Castalia has published a report criticising Fonterra’s capital structure changes that received over 85% support from Fonterra’s shareholders in December 2021. The report was commissioned by Fonterra’s largest competitor for New Zealand raw milk.

Fonterra disagrees with the report and a number of its conclusions including the assertion that protections for a fair milk price will be eroded and that the restructure will cause Fonterra’s Milk Price to increase. Fonterra also notes that Castalia estimates Fonterra’s future share price on the basis of possible dividends up to 2030 but appears to assume that Fonterra has zero value at the end of 2030. Fonterra considers this to be a misleading approach to valuing its shares.

The report contains no perspectives not previously considered by Fonterra and discussed with shareholders in the lead up to the 2021 vote.

ENDS

•  Fonterra responds to Castalia report

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

TWR - Capital Return - ATO Class Ruling Obtained
THL - FY25 Trading Update
April 17th Morning Report
EBOS announces opening of Retail Offer
MCY - FY2025 EBITDAF guidance revised to $760m
April 16th Morning Report
AIA - March 2025 Monthly traffic update
Ryman Healthcare FY25 full year results and webcast detail
CHI - Q1 2025 Operational Update
CNU - Q3 FY25 Connections Update