FSF - Fonterra Shareholders Fund

[Tim nice but dim]

my prediction on the final dividend based on what we have seen in previous years.

EPS         75c/share
Div %       75% (policy 60-80%)
Total Div   56c/share
Interum Div 22c/share
Final Div   34c/share

Last interum div had all the tax paid as part of the PIE so we got the full 22c in the bank. lets hope this continues.

What are you going to do with yours?

[LoungeLizard]

my prediction on the final dividend based on what we have seen in previous years.

EPS         75c/share
Div %       75% (policy 60-80%)
Total Div   56c/share
Interum Div 22c/share
Final Div   34c/share

Last interum div had all the tax paid as part of the PIE so we got the full 22c in the bank. lets hope this continues.

What are you going to do with yours?

For the last two years they've paid a 40c final dividend.  Don't think it will be quite that high so you could be on the money with something around 30c. Will find out soon. Up 15c today so far

[Tim nice but dim]

For the last two years they've paid a 40c final dividend.  Don't think it will be quite that high so you could be on the money with something around 30c. Will find out soon. Up 15c today so far

The change is the dividend policy up from 40-60% to 60-80% of EPS.

[BlackPeter]

Quite interesting. Milk is a cyclical stock - and lows have been 2 to 3 years ago. Actually - this is what it takes to get new calfs into milk production.

What do we expect? Another high around the $8 and than it goes down again?

BTW ... The amazing divy was only paid for a third fo the time ... if I trust the D's in yahoo ...

[Tim nice but dim]

Attached yahoo divs. Suspended between April 2018 & Sept 2020

[LoungeLizard]

https://www.nzx.com/announcements/457279

A projected capital return of $2 per share. I wonder how that will be distributed between farmer shareholders and public shareholders?

[Left Field]

https://www.nzx.com/announcements/457279

A projected capital return of $2 per share. I wonder how that will be distributed between farmer shareholders and public shareholders?

The statement implies $2.00 per FSF share. If that's the case, then WOW for holders! (Patiently waiting to see the fine print tho'.)

[seaweed]

The statement implies $2.00 per FSF share. If that's the case, then WOW for holders! (Patiently waiting to see the fine print tho'.)

This is my best performing stock have been quietly increasing my holding from 6.18c on 13/5/25.

[LoungeLizard]

The statement implies $2.00 per FSF share. If that's the case, then WOW for holders! (Patiently waiting to see the fine print tho'.)

Hope, you're right LF, although there's a few hurdles to clear first.

Excellent news for us holders, but I agree with some of the comments on the other channel that this is a backward step for NZ. Fonterra is one of the biggest producers and exporters of dairy products in the world and yet it doesn't back itself to take the industry "to the next level." Moving out of the consumer, added-value chain and just being an ingredient provider seems to me to be the opposite of what has been talked about for decades.

An IPO with Fonterra retaining majority ownership would have been a better deal IMO.

[LoungeLizard]

This is my best performing stock have been quietly increasing my holding from 6.18c on 13/5/25.

Good on you Seaweed. Let's both of us hang in there longer with our Spark holdings

[Tim nice but dim]

looking back when this was first announced the estimated sale price was $2.6 - $3.4 B. They got $3.845 B in the end so they have far exceeded the initial predictions.

Given that return to holders will be $2.00/share (with 1,716,601,539 shares on issue) resulting in return to holders of $3.432 B. So the sale process has chewed up $413 M of the sale price or 10.74% of proceeds. I didn't think this would be cheap.

[Habitz]

I dont think that Fonterra is that stoopid, tens of millions is more the ballpark. Whatever is left will go into capital to use to improve farmer returns. They have said they're aiming for higher returns on capital, so could be a $10 share price in a couple of years based on higher earnings plus the $2 capital payout

[Left Field]

Nice outcome..... well done FSF

Update on divestment of Consumer and associated businesses
 
 Fonterra Co-operative Group Limited has today announced that the dispute with Bega Cheese Limited in relation to the Bega licences has been resolved.
 
 Bega agrees that the structure of the sale to Lactalis of Fonterra's global Consumer and associated businesses does not constitute a change of control under the Bega licences.
 
 As a result, the Bega licences held by Fonterra's Australian business will be included in the divestment.
 
 As previously announced, Lactalis will pay Fonterra $375 million for the Bega licences in addition to the $3.845 billion base enterprise value, bringing the total proceeds for the sale of the Consumer and associated businesses to $4.22 billion.
 
 Fonterra has agreed to pay Bega's legal costs to resolve the dispute.

[LoungeLizard]

Nice outcome..... well done FSF

Update on divestment of Consumer and associated businesses
 
 Fonterra Co-operative Group Limited has today announced that the dispute with Bega Cheese Limited in relation to the Bega licences has been resolved.
 
 Bega agrees that the structure of the sale to Lactalis of Fonterra's global Consumer and associated businesses does not constitute a change of control under the Bega licences.
 
 As a result, the Bega licences held by Fonterra's Australian business will be included in the divestment.
 
 As previously announced, Lactalis will pay Fonterra $375 million for the Bega licences in addition to the $3.845 billion base enterprise value, bringing the total proceeds for the sale of the Consumer and associated businesses to $4.22 billion.
 
 Fonterra has agreed to pay Bega's legal costs to resolve the dispute.

Should give the SP a further boost. Incredible run over the last 18 months or so - doubling in value. Glad I bought in a year ago - just wish I'd bought more!
 If the sale goes through and FSF confirm a substantial payout to shareholders ($2 per share?) plus a 20c+ divvy coming in October, could the SP get close to $10??

[Habitz]

Just 6 or 12 months ago virtually no one made comments about Fonterra apart from the odd person saying crap like, investing in Fonterrible is a waste of money. I'm liking the change in sentiment