Photo: RNZ / Rebekah Parsons-King
Fonterra has outlined details of its planned $800 million capital return following interim orders by the High Court.
The initial court orders included the calling of a shareholder meeting to consider the capital return, which would be implemented by way of a scheme of arrangement.
The scheme would see one in every six shares held by each shareholder repurchased and cancelled.
Each shareholder would receive $3 for each repurchased and cancelled share, Fonterra said.
It said at the same time, one share held by each shareholder not repurchased by the co-op, would be subdivided into the same number of ordinary shares that were repurchased from the shareholder, with one more added on.
It said as a result, each shareholder would end up with the same number of shares as held before the buy-back and that would mean shareholder voting rights would not be affected.
Fonterra said it would also avoid creating share compliance issues for farmers.
Fonterra said a virtual special shareholder meeting would be held on 12 July.
It said notice of the meeting and documents would be sent to shareholders by 21 June.
It indicated final High Court orders would be made by 3 August, with the scheme implemented on 11 August and shareholders paid by 17 August.
