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

 

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

Air New Zealand: Business Travellers Return To The Skies In Record Numbers

After a year of talking to a computer, Kiwis are leaving the office to re-connect with their clients, suppliers, and staff. New figures released by Air New Zealand show domestic business and corporate travel has defied global trends by returning ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>

Commerce: House Values Continue To Climb As New Government Measures Announced

The Government’s new initiatives to quell the rocketing housing market were announced last week, just as house prices hit a new high for the end of March. The average value increased 7.8% nationally over the past three-month period, up from the 6.8% ... More>>