Farmlands CRT merger one step closer

Media release: February 13, 2013

Farmlands CRT merger one step closer

The boards of CRT and Farmlands, recommending a merger of their societies, have attracted overwhelming shareholder support to take the process to its next stage.

The CRT shareholder meeting in Christchurch on Tuesday completed the first of two shareholder votes required to approve a merger with those in favour accounting for 85.5% of the vote, exceeding the threshold of 75% of votes necessary to proceed.

CRT chairman Don McFarlane said he was very pleased with the outcome.

“The boards and management of both societies have put considerable effort into the formulation and evaluation of the proposal before it was put to shareholders. We thought it made sense, our independent advisors agreed, and now the plans have been endorsed by the shareholders of both organisations,” he said.

Mr McFarlane said the result meant that less than three percent of the total shareholder base had voted against the proposal. This amounted to a strong mandate to proceed.

“It’s a busy time of year for farmers. Shareholder feedback at our eighteen road show meetings was valuable. Many shareholders were busy with harvest and other activities and just wanted the co-ops to get on with the merger because it made sense,” he said.

The merged entity will have 54,000 members throughout New Zealand, more than 1,000 staff, 47 farm supplies stores in the North Island and 31 in the South Island, with combined historic sales in excess of $2 billion a year.

A business plan for the merger identified potential net synergy benefits amounting to $18 million from the third year onwards.

Mr McFarlane said that, subject to a confirmatory vote by shareholders on February 27, a merger would proceed on March 1, 2013, beginning a process of unlocking benefits to Shareholders.

ENDS

© Scoop Media