Dairy Co-op to implement new capital structure in March

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Dairy Co-op to implement new capital structure in March

New Zealand dairy giant Fonterra Co-operative Group Ltd said on Friday it would implement its new capital structure, intended to make it easier for new farmers to join the co-operative in late March next year.

In December last year, the dairy firm's farmer shareholders gave the go-ahead for the capital restructuring that aims to claw back domestic market share and retain existing farmers by reducing the minimum supply requirement for farmer owners.

Peter McBride, chairman of Fonterra, said that late March is the best date for implementation because it avoids the share trading black-out period associated with the Co-op's interim results.

It gives shareholders time to fully digest the information we'll be sending through ahead of the implementation date, and to seek advice from their financial advisors. The interim results of Fonterra are scheduled for mid March and will be finalized by the end of March.