Dairy Equity announcement - 30 May 2008
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Dairy Equity Limited (DEL) | 4:41 pm, Friday 30 May 2008 | DEL | 0.230 |
 -0.010 |
(-4.17%) |
NZSX listed Dairy Equity Ltd (DEL) today advised that the decrease in
Fonterra Fair Value Share (FVS) price announced by Fonterra today will have a
material impact on net asset backing and earnings for the current financial
year ended August 2008.
The announcement by Fonterra that the FVS price for the FY09 farming season
started 1 June 2008 will decrease by $1.22 per share (from $6.79 to $5.57).
It also announced that the VAC payment, the dividend, has increased by 13
cents to 35 cents/kg milk solids.
Acting Chairman, Phil Lough, said the net impact on DEL of Fonterra's
increase in VAC payment and decrease in FVS share price is that based on the
remaining FVS not contracted for sale or redemption the net asset value at
the end of the current financial year will reduce by approximately $2.1
million. This would reduce the net asset backing of a DEL share by
approximately 4.6 cents to approximately 45 cents per share for the
45,757,500 shares currently on issue. This net reduction in value will also
directly impact this year's profit by the same amount although DEL would
still return an operating profit based on the higher VAC income.
Phil Lough
Acting Chairman
Dairy Equity Limited
