AGC waives CBH break fee

AGC waives CBH break fee


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

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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.

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