National Banks March rural report
The National Bank studies Fonterra’s proposed changes in capital structure, and looks at how new generation co-operatives( two UK and two NZ NGC’s) have performed in the market.
They say it seems clear that the financial performance of a new generation co-operative needs to be very strong to support the price of a restricted share close to asset backing. The report shows that share price premiums/discounts over asset backing are quite variable between companies and for the same company over time.
