E-Malt.com News article: 3304

Australia: ABB Grain Ltd announced on September 21 2004 that shareholders of ABB Grain Ltd, AusBulk Ltd and United Grower Holdings Ltd have overwhelmingly supported a merger of the three companies that will create one of Australia’s largest agribusiness entities with a market capitalization in excess of $850 million dollars.

The merger will become effective on Monday, September 27, providing the Schemes of Arrangement that allow AusBulk and UGH shareholders to swap their shares for ABB Grain’s ASX-listed “B-Class” shares are approved by the South Australian Supreme Court on Friday, September 24 and all other conditions precedent are satisfied.

Proposed chairman of the merged entity, Perry Gunner, said the strong endorsement of shareholders indicated the strength of support for a new locally based entity in the grain industry that would have a global, export-oriented focus.

“Our shareholders have strongly endorsed our vision for a new company that will take the best of the three preceding entities to create an even stronger force going forward.
“With the company’s stake in the grain supply chain from the farm gate, through storage and handling, grain processing and grain trading and our expertise in trading and malting barley we will have a unique position in the world grain trade,” Mr Gunner said.

In summary:
UGH shareholders cast 94.28% of votes for the merger and 5.72% against.
AusBulk shareholders (not including UGH) cast 93.96% of votes for the merger and 6.04% against.
ABB A-Class or “grower” shareholders cast 93.97% of votes for the merger and 6.03% against.
ABB B-Class or “equity” shareholders cast 97.25% for the merger and 2.75 % against.

It is expected that the trading of new ABB “B-Class” shares will start on a deferred settlement basis on Tuesday, September 28. Existing ABB shareholders will be able to trade their existing B-Class shares on a normal T+3 basis.

Holding statements for the new ABB shares will be dispatched on October 8.


22 September, 2004