Expert Says Fonterra Backing Current Strategy With New CEO Appointment
The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.
The offer opened with an indicative margin of 1.45 to 1.60% per annum, Fonterra said in a statement to NZX.
The bonds are expected to mature on March 7, 2023. An announcement of the actual margin and the interest rate on the bonds will be made following the bookbuild process, expected to be on February 26, 2016.
The bonds are expected to be quoted on the NZX Debt Market and are expected to be assigned a long term credit rating of A- by Standard and Poor's and A by Fitch.
There is no public pool for the offer, with 100% of the bonds reserved for institutional investors, clients of the lead manager, the co-manager and primary market participants (eg. broking firms accredited by NZX to participate in NZX markets).
Meanwhile Fonterra has also announced it has finalised the sale of its Australian yoghurt and dairy desserts business to Parmalat Australia Pty Ltd.
All conditions and regulatory requirements have been met.
On December 16, 2015, Fonterra announced the divestment of its Australian yoghurt and dairy desserts business, which includes manufacturing sites at Tamar Valley and Echuca as well as its Australian yoghurt and dairy dessert brands, as part of a comprehensive plan to return the cooperative's Australian business to strong profitability.
