Murray Goulburn's farmer shareholders have voted in favour of a capital restructure that could see the dairy cooperative raise $500 million through an ASX-listed unit trust.
The plan, which will enable the company to benefit from external investment while maintaining full farmer control, drew the support of 92 per cent of Murray Goulburn shareholders an extraordinary general meeting held last week.
The capital will raised by issuing shares in a unit trust, while the voting rights will be maintained by the company's milk suppliers.
Following the meeting MG managing director, Gary Helou, said: “The approval of the capital structure gives us the opportunity to raise $500 million in new capital which we will invest to further our strategic shift towards premium value-add dairy foods and in the process reduce MG’s exposure to the volatility of the dairy commodity price cycle.
“Global demand for dairy foods continues to grow, particularly in Asia. All global dairy companies are racing to capture a share of these growth opportunities and in this context, MG does not have a moment to waste. We will invest the new capital we ultimately raise, in world’s leading manufacturing capability and market reach, to ensure we are well placed to meet and serve the growing needs of dairy customers and cons.
MG chairman Philip Tracy said: “With the EGM now behind us, we will move forward with the various offers to eligible suppliers and external investors to invest in MG’s future, with the aim of completing the fundraising process and listing the MG Unit Trust on the Australian Securities Exchange in July.”
