Fonterra spreads $525m fund to beat disclosure rules

No single investor owns more than 5% of units in the $525 million Fonterra investment fund – which means investors do not have to be publicly disclosed.

Under the Securities Markets Act and Financial Markets Authority rules, any holding over 5% has to be disclosed.

Fonterra chief financial officer Jonathan Mason told NBR ONLINE he does not believe any single unit-holder has more than 5%.

"That would have to be disclosed."

Fonterra revealed yesterday it has set its unit price at $5.50, at the top of the range in its prospectus.

Mr Mason would not confirm whether China's sovereign wealth fund, the $US400 billion China Investment Corp, had invested.

"We really don't want to confirm specifics," he says.

In terms of releasing information about which companies had invested, Mr Mason says: "We won't unless we have to."

Given trading of the units is scheduled to begin on the NZX and ASX on Friday, large unit-holders may have the opportunity to increase their holding and some may breach the 5% threshold.

Fonterra's policy is for no single investor to hold a total of more than 15% of units.

While Mr Mason would not give a breakdown of its $525 million fund last night, the Australian Financial Review disclosed institutions were allocated about $300 million of stock, $125 million went to the broker firm offer and $75 million to so-called friends of Fonterra.

Being closer to trading of units and "getting permanent capital" was a big step forward, Mr Mason says.

dwilliams@nbr.co.nz

This article is tagged with the following keywords. Find out more about My Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7850 0.0000 0.00%
AUD 0.8924 0.0000 0.00%
EUR 0.6196 0.0000 0.00%
GBP 0.4880 0.0000 0.00%
HKD 6.0917 0.0000 0.00%
JPY 84.8970 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1231.3 2.700 2014-10-24T00:
Oil Brent 86.1 -0.700 2014-10-24T00:
Oil Nymex 81.0 -1.020 2014-10-24T00:
Silver Index 17.1 0.020 2014-10-24T00:

Indices

Symbol Open High Last %
NZX 50 5292.8 5344.4 5292.8 0.77%
NASDAQ 4459.5 4486.3 4452.8 0.69%
DAX 9008.6 9044.9 9047.3 -0.66%
DJI 16677.0 16811.7 16677.9 0.76%
FTSE 6419.1 6419.1 6419.1 -0.47%
HKSE 23311.9 23352.6 23333.2 -0.13%
NI225 15354.4 15377.0 15139.0 1.01%