Plans by Australian dairy co-op Murray Goulburn to float a non-voting unit trust will be voted on by its farmer-members next month.
An EGM will be held in Melbourne on 8 May, Murray Goulburn, which hopes to raise A$500m (US$388.7m) for expansion plans, said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Last October, Murray Goulburn delayed the plans and pushed back a planned fourth round of meetings with members. However, the talks have now taken place. Philip Tracy, the co-op's chairman, said "after more than 12 months of consultation and discussion with our suppliers, we have arrived at a historic moment".
Tracy said: "The recommended capital structure will ensure suppliers retain 100% control of MG while providing the strong foundations and stable capital base required to pursue growth opportunities and deliver a sustainable increase in the farmgate milk price for suppliers."
Under the proposal, the majority of new capital will be raised through the IPO of a unit trust listed in Australia. Unitholders will have an economic exposure to Murray Goulburn’s business but will not have voting rights in relation to the co-op or its operations. The remainder of the capital would be raised through offers of shares made to suppliers.
A fifth round of supplier meetings discussing the capital structure will be held later this month and early May ahead of the vote, Murray Goulburn said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
