Rural / Country

Fonterra prepares new restructuring plan

09:34 am on 3 February 2009

Fonterra's board is preparing the ground for a second attempt to get its farmer shareholders on board for a capital restructuring programme.

The co-operative has had to rethink its restructuring strategy after it became clear it would not get the 75% support it needed from its farmer share-holders to push through its preferred option.

That option allowed outside investment in its businesses and listing the company, to provide more funds for growth.

The company shelved the plan after farmers raised strong concerns about diluting their ownership and control of the company.

Fonterra chairman Henry van der Heyden said that option is now off the agenda.

The company is not yet saying what will be in its new capital restructuring plan, nor when it may be unveiled, but Mr van der Heyden is confident a solution will be found that farmers can accept.