Stock Journal - news, classifieds & community
Adelaide Weather - Clearing shower
Now
Max
Adelaide, SA
Clearing shower
 

ABB merger with Viterra gets go ahead

09 Sep, 2009 01:17 PM
Comments
1
 

CANADIAN agribusiness giant Viterra has taken control of ABB Grain following a vote by shareholders in favour of the merger at a special meeting in Adelaide this morning.

At the scheme of arrangement meeting in Adelaide, 60.4per cent of shareholders voted in favour of the deal, with 83.5pc of the total number of votes cast for the proposal.

The vote was conditional on the 15pc shareholding cap being removed, which is a formality now that the takeover is proceeding.

Viterra needed a majority of ABB Grain shareholders - 50pc plus one - to vote for the deal, together with at least 75pc of the total number of votes cast.

More than 300 people packed the meeting room at the Holiday Inn for the decision.

While the numbers were eventually in favour of a merger, initially it appeared to have been a big ask.

But with just 40 shareholders holding more than 50pc of total issued capital in ABB Grain, only a small number of people needed to be convinced of the deal's merits.

Shareholders were offered a consideration of $4.35/share in cash, plus a 41c/share ABB Grain special dividend, as well as 0.4531 Viterra shares or Viterra CDIs for each ABB Grain share.

ABB shares were placed in a trading halt on the Australian Securities Exchange while today's meeting was held, with shares last traded this morning at $9.08.

* Full report in Stock Journal, September 10 issue.

Date: Newest first | Oldest first

READER COMMENTS

Frank
15/09/2009 5:40:05 AM, on Stock Journal

This vote for the merger between ABB & Viterra is a great result not only for the shareholders who benefit directly but for the Australian grain industry. Now it has a truly international player based right on the growers' doorstep, to genuinely compete for growers' grain against the "merchants of grain" who manipulate the market-place. Viterra's first job is to put a genuine cost-effective system in place for growers to receive the benefits of efficient grain pathways management. Since the demise of the SAFF Grains Council & the GCA as an independant representative & advocate for growers' commercial interests, the grain industry has desperately needed leadership. Because of the roots of both companies being originally vested in orderly marketing, the new company must address this issue first. It has the ideal opportunity to do this for this year's grain crop. What a better place to start than capture the "synergies" between the two companies and apply reduced fees to charges that have been added to the supply chain over many years. As there is no-one to negotiate these on growers behalf Viterra must act to apply a loyalty based scheme to customers who support Vittera.

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 

COMMENTS

light grey arrow
Multi origin grain was hardly an amazing success story for AWB in Brazil!!!! How about
light grey arrow
Wrong! Volume fluctuations are largely seasonal and are generally predictable. Unexpected drop
light grey arrow
No problems Wally buy up every wool growing property in the country and you can then control the