AGC waives CBH break fee

10 Mar, 2016 02:23 PM
Comments
4
 

AUSTRALIAN Grains Champion (AGC) has waived a $16 million break fee and exclusivity requirement on its CBH corporatisation proposal.

The announcement was made this afternoon and addresses some of the concerns CBH has publicly aired regarding the proposal.

However, AGC director Brad Jones said he had doubts the CBH board would genuinely consider the offer.

"The response to date from the CBH Board to the AGC proposal clearly indicates that the CBH Board has no intention of allowing Western Australian grain growers to consider the benefits of the proposal and instead will prevent growers from voting on it," he said.

"The CBH board’s primary focus has been on the non-core terms of the proposal, in particular a break fee and a request for exclusivity contained in our Process Agreement, both of which are customary in a proposal of this nature."

Mr Jones said feedback from CBH grower-members was that they want the opportunity to consider the merits of the proposal and these conditions have become an unnecessary distraction from what is otherwise a very compelling proposal.

"Rather than consider the proposal on its merits, the board has chosen to concentrate on a distraction in order to prevent the due diligence required by AGC so its Proposal’s benefits can be given proper consideration by growers," he said.

"Twelve CBH directors shouldn’t prevent 4,200 CBH members from having their say on the AGC proposal."

Comment is being sought from CBH.

FarmWeekly
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READER COMMENTS

Consolidated
11/03/2016 5:42:36 AM, on Farm Weekly

There are no excuses left for the board now. You won't see Deutschebank waiving their multimillion dollar fees to help CBH avoid the scrutiny of AGC examining their books and avoid a vote. Put it to a vote Wally and Co.
she told me to sell
11/03/2016 5:47:09 AM, on Farm Weekly

growers I talk to can't to want the right to vote because the current board seem to think they are above everyone else. wasting money over east, on their trading desk, asian investments!!!!! It's not their piggy bank, it is OUR livelihoods and our investment in OUR future.
beacon boy
11/03/2016 5:59:25 AM, on Farm Weekly

Ok let's have the vote. It's obvious CBH have something to hide in their books and I am betting some major losses that they are covering at the moment. of course they have always been able to cover up losses by cross subsidizing and fiddling the books accordingly. these directors are on notice and should have learnt from the AWB that corruption always catches up with you
Halfcocked
11/03/2016 11:17:16 AM, on Farm Weekly

Everybody in the corporate world can see that CHB is a cash cow in waiting and its clients can be milked real hard.If AGC where fair dinkum they would come out with the share conpoment pricing at around $ 3.25 but are fumbling around with figure close to$ 1.10,buy of the century?.?

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