Largest dairy exporter seeks investors

Fonterra Co-operative Group Ltd is seeking to raise up to NZ$525m (€334m) from a fund that will next month open the world’s largest dairy exporter to equity investors for the first time.

The Fonterra Shareholders’ fund will sell units at NZ$4.60 to NZ$5.50 apiece, valuing New Zealand’s largest company at between NZ$7.4bn and NZ$8.7bn, it said in an offer document released yesterday. The units, which track the company’s financial performance, will be offered to existing stakeholders on Nov 5 and are likely to begin publicly trading on Nov 30.

The fund will give global investors their first access to the 10,500-member co-operative that collects almost 90% of New Zealand’s milk.