Livestock Improvement buys back $5.3M of shares to simplify structure
By Tina Morrison
April 19 (BusinessDesk) - Farmer-owned cooperative Livestock Improvement Corp will buy back $5.3 million of its shares as part of its move to simplify its share structure.
In March the company's shareholders voted to reclassify all cooperative control shares and investment shares into a single class of ordinary shares. Livestock Improvement said today that a small number of shareholders had elected to exercise their minority buy-out rights under the proposal.
The company confirmed it will buy back 1,334,396 investment shares at $4 apiece, matching the valuation which the board put on each investment share, which is within the value range of $3.81 and $4.88 assessed by Northington Partners in its report to shareholders on the proposal.
Livestock Improvement said it will take ownership of the shares today and will retain them as treasury stock.
The company's investment shares last traded at $3 on the NZX Alternative Market. Under the proposal, trading in investment shares is to be suspended on July 16, with trading in ordinary shares to start July 23.