Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Farmers say ‘yes’ to rural stores merger


Farmers say ‘yes’ to rural stores merger

Farmer Shareholders in the rural supply co-ops Farmlands and CRT have agreed to merge the two Societies with a majority of Farmlands and CRT Shareholders voting in favour of merger in today’s second special vote.

It means an immediate bonus for Shareholders in both co-ops. A bonus share issue of $32 million shares is being made to shareholders to distribute the retained earnings and unallocated reserves of the two co-operatives prior to merging.

And the two companies will distribute more than $8 million in an interim bonus rebate to Shareholders. This relates to their trading with the two co-operatives over the period 1 July– 31 December 2012. The rebate will be paid in a 60/40 share/cash split.

The decision clears the way for a March 1, 2013 merger of the two businesses, creating a nationwide farm supplies co-op with 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 and combined historic sales of $2 billion a year.

Farmlands chairman Lachie Johnstone, who will chair the Establishment Board of the merged entity, and CRT chairman Don McFarlane said they were very pleased with the outcome.

“The boards and management of both companies both worked hard to formulate and evaluate the proposal before it was put to Shareholders. It makes a lot of sense and we’re pleased these plans have been endorsed by the Shareholders of both organisations,” they said in a joint statement.

Mr Johnstone said the Establishment Board and management would move quickly to ensure merger gains were captured on behalf of Shareholders.

All Shareholders would shortly receive information about the bonus issues to be completed as part of the new capital structure of the merged co-op, he said.

Mr McFarlane said the quality of the analysis and consultation process was a tribute to both management teams and Boards, and he was delighted the merger would proceed.

“It’s an historic milestone for both Societies, and one that I am sure we will look back on as a valuable and worthwhile step,” he said.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news