Farmers Say 'Yes' To Rural Stores Merger
February 12, 2013
Farmers Say ‘Yes’ To Rural Stores Merger
Farmer Shareholders in the rural supply co--ops Farmlands and CRT have given their Boards a clear mandate to take the next step towards a merger of the two Societies.
In the first of two Shareholder votes required to approve a merger, 82.5% of Farmlands Shareholders voted in favour of the proposal, exceeding the 75% of votes required to take the proposal to the next stage.
The results follow today’s special meetings of Farmlands and CRT Shareholders in Hamilton and Christchurch. Farmlands chairman Lachie Johnstone said his Board was delighted by the result.
“The Establishment Board for the merger will continue its preparations to ensure a merger had its best chance of succeeding, subject to approval by Shareholders at a second vote on February 27, 2013,” he said.
Shareholders must approve the proposal at that vote by a simple majority of more than 50%.
The merged entity would 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 $38 million over the first three years.
Mr Johnstone said both Societies had consulted extensively on the proposal, including recent farmer meetings to discuss the merger, and the voting reflected the strong support the proposal received during this consultation process.
“We will continue to encourage Shareholders to become informed and engaged as they consider their next vote later in February,” he said.