Fonterra Will Spend Up To $50 Million Buying Back Its Shares Over The Coming Year To Support Their Value

Fonterra will spend up to $50 million buying back its shares over the coming year to support their value. The co-op says it planned to acquire as many as 77 million shares or up to 5% of those on issue. Fonterra undertook a similar $50 million buyback last year, saying the shares were undervalued and it was impacting farm balance sheets. Fonterra requires its farmers to hold shares in proportion to the volumes of milk produced by a supplier each season. But in order to help them compete with commercial rivals which don’t require share ownership, it now allows farmers to hold fewer shares now. The co-operative’s shares last traded at $3.12 and have gained 27% over the past year.