AGC come out swinging

AGC come out swinging


Agribusiness
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AUSTRALIAN Grains Champion (AGC) have gone direct to growers this week seeking to 'correct misinformation' about its proposal to corporatise CBH Group.

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AUSTRALIAN Grains Champion (AGC) have gone direct to growers this week seeking to 'correct misinformation' about its proposal to corporatise CBH Group.

More than 4,000 WA growers have been sent a USB media card and letter this week from AGC directors that retierates the AGC proposal and seeks to clear up confusion about the unsolicited offer, which was rejected by the CBH board in March.

The USB, which includes an audio clip from AGC grower director Brad Jones as well as videos of AGC directors answering questions about the deal.

In the pre-recorded audio file, Mr Jones said there had been much speculation in regards to AGC, but there were two main parts of the proposal.

"Firstly, we want to reform CBH's ownership, changing it to a public listed company, listed on the Australian Stock Exchange (ASX).

"This would unlock [growers] long held equity in CBH, converting into cash and valuable shares that sit on [the] farm balance sheet under [grower] control,"Mr Jones said.

"Second, this new structure would ensure CBH has the funding and is set up to compete strongly on the world stage.

"Under our proposal, growers retain significant ownership and control of the company upon listing."

An AGC spokesperson said the latest campaign to growers was to ensure there was no misinformation in regards to the proposal and remind WA growers that the AGC proposal was still alive.

"We are currently reviewing our position to ensure that our proposal provides maximum benefits to WA growers," he said.

There are currently two options open to the AGC in terms of allowing growers to directly vote on the proposal.

AGC could go through the CBH board a second time after the initial rejection in March or go direct to growers.

CBH are currently undergoing a governance and structural review, where several models for part, or total, corporatisation are likely to be put to growers in September.

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