Murray Goulburn is looking to list on the Australian Securities Exchange (ASX) in a bid to raise $500 million to fund future expansion.
In a discussion paper sent to suppliers and shareholders, the company is proposing the creation of an ASX-listed unit trust which would allow external investment while maintaining full farmer control of the company.
In the discussion paper, the co-operative proposed the idea of the ASX listing which would see capital raised through the structure by issuing shares in a unit trust. The voting rights, however, would be maintained by the company's suppliers.
According to the company, the funds would help it reduce its reliance on debt funding to upgrade its manufacturing and supply chain infrastructure.
Murray Goulburn said the new capital structure would provide access to equity capital to effectively fund strategic operational and commercial initiatives to deliver a sustainable increase in the annual Farmgate Milk Price.
“Under the proposed structure suppliers will continue to hold shares in the co-op and capital will be raised by the issue of units in a unit trust, which will be listed on the Australian Securities Exchange,” the company said.
“The unit holders in the trust will not have voting rights in relation to MG’s operations and, as is the case today, only active suppliers will hold voting shares in MG.”
If the plan is approved by suppliers, the new structure is expected to be adopted in March or April next year.
