Fonterra Co-operative Group Limited has announced that it is putting on hold plans to develop an Equity Partnership Trust.
“This is a consequence of UBS deciding, for reasons unrelated to the Trust itself, to end its advisory role that began late last year, and volatility in dairy and equity markets,” said Chief Financial Officer Lukas Paravicini. “These two factors mean that it is appropriate to hit the pause button.
“We will take the time needed to review the structure of the proposed Trust and its implementation, as market conditions unfold,” said Mr Paravicini.
The proposed Trust would enable farmers to partner with investors, who would take a minority stake in dairy farms. The proposal is aimed at providing farmers wider access to long-term equity while still maintaining control of their farms.