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Dairy cows - Source: ONE News -
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It is a historic day for Fonterra farmers, who on Monday will be invited to increase their stake in the dairy co-operative.
Fonterra farmers can now buy up to 20% extra shares in the co-operative above and beyond shares tied to milk production.
Fonterra last week issued a share price of $4.52 and is hoping to raise $600 million.
"That would be equivalent to around about all farmers taking up half their offering of 20%," says Tony Leggett from New Zealand Farmers Weekly.
The move follows the recent capital restructuring plan. It is expected the money will be used to strengthen the co-operative's balance sheet and put it in a position to forge ahead as a global food group.
Federated Farmers has welcomed the move and believes many farmers will take up the opportunity.
