At its recent Extraordinary General Meeting, Murray Goulburn (also trading as Devondale) Co-operative Co, Ltd.’s Suppliers and Shareholders voted overwhelmingly to introduce its new proposed Capital Structure. The new Capital Structure has been under consultation with Murray Goulburn’s Suppliers/ Shareholders since mid 2014 and is intended to fund Murray Goulburn’s delivery of a sustainably higher Farmgate Milk Price (FMP) and investment in new technology for its processing facilities while reducing its reliance on debt funding.
The successful vote flagged the immediate start of a Supplier Share Offer (SSO), to be concluded on the 22nd of May 2015. This offer will provide Murray Goulburn suppliers with the opportunity to purchase fully paid ordinary shares with voting rights up to their Share Standard (voting cap).
Under the new Capital Structure Murray Goulburn will be listing a Unit Trust on the Australian Securities Exchange (ASX). The publicly traded trust units will provide a way for the general public to invest in and profit from Murray Goulburn’s success. However, because unit holders in the trust will not have voting rights, the company’s 100% farmer control will remain unchanged.