NEWZEALAND – Fonterra Shareholders’ Fund (FSF) has received conditional approval to be removed from the official list of the Australian Securities Exchange (ASX).
A report by the company stated that the decision to seek delisting was aimed at consolidating FSF’s listing on a single exchange to enhance liquidity and reduce compliance and administrative costs.
The fund, which allows investors to buy units in Fonterra Co-operative Group Limited, has most of its unitholders based in New Zealand.
According to the announcement, FSF intends to comply with the conditions set by ASX and expects to be delisted on February 27, 2025.
Unitholders who wish to sell their FSF units on ASX have been advised to do so before February 25, 2025. Once the delisting takes effect, unitholders will be able to trade their units exclusively through the New Zealand Stock Exchange (NZX) or via off-market private transactions.
Reports indicate that Australian unitholders will need to engage an Australian broker to facilitate the sale of units on the NZX.
Fonterra has emphasized that the move aligns with its broader strategy to simplify its capital structure and focus its investor base.
The decision follows an earlier application to delist FSF from ASX, which was submitted on January 8, 2025.
Further updates from the company confirmed that the transition would be accompanied by a migration to the NZX Main Board.
The fund’s performance has seen fluctuations in recent months, with shares trading at a high of US$4.55 and a low of US$4.42 as of January 16, 2025.
Market data reported by NZX indicates that FSF’s one-week trading range has been between US$4.25 and US$4.41, with a 52-week range extending from US$2.11 to US$4.93.
The fund’s current market capitalization stands at approximately US$7.32 billion, with a trading volume of 243,261 units and a total trade value of US$1.1 million recorded during the latest trading session.
Reports further highlight that this move is part of Fonterra’s broader strategy to optimize its financial position and operational focus.
Previous statements from the company have pointed to ongoing efforts to strengthen its balance sheet and improve shareholder returns.
In recent months, the company has announced strategic initiatives, including lifting its FY25 milk price forecast and maintaining its earnings guidance.
The transition to a single exchange listing is expected to bring long-term benefits by streamlining investor engagement and reducing the complexities associated with maintaining dual listings.
Analysts have noted that while the delisting may pose short-term liquidity challenges for some investors, it aligns with Fonterra’s objective of reinforcing its financial structure and focusing on sustainable growth.
The company has reiterated its commitment to working closely with affected unitholders to ensure a smooth transition.
Further details on the delisting process and guidance for investors are expected to be communicated by FSF in the coming weeks.
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