Murray Goulburn's plan to raise $500 million through an ASX-listed unit trust will be put to its suppliers next month.
The company says the plan would allow external investment while maintaining full farmer control of the company. An Extraordinary General Meeting to vote on the new capital structure will be held in Melbourne on 8 May.
The capital will raised by issuing shares in a unit trust, while the voting rights will be maintained by the company's suppliers.
“After more than 12 months of consultation and discussion with our suppliers, we have arrived at a historic moment. At stake is our ambition for MG to be a world-class dairy foods business for generations to come,” MG chairman Philip Tracy said.
“The recommended capital structure will ensure suppliers retain 100 per cent 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.”
Tracy said the $500m of capital raised would support MGs growth and value creation strategy to deliver sustainably higher Farmgate Milk Price and future earnings through investment in higher value-add products, improving operational efficiencies and innovation capabilities.
MG Managing Director Gary Helou said: “Together with our more than 2500 suppliers we have worked tirelessly to develop a capital structure that strikes the right balance between suppliers and external investors to maximise returns.
“We will use the capital raised to invest in world leading manufacturing and supply chain capabilities to improve efficiencies and increase market reach in key growth categories including consumer cheese, dairy beverages and nutritional powders. These initiatives will underpin higher returns to suppliers over the longer term as we capitalise on growing demand for value-added dairy food products in Australia and Asia.”
