Shareholders in Australian dairy co-operative Murray Goulburn (MG) have voted in favour of a Fonterra-style capital structure that will see its units trade on the ASX.
The vote took the co-op closer towards its goal of raising A$500 million ($529 million) to fund capital investments to enable higher farmgate returns. The election follows 18 months of consultation and discussion, including five rounds of supplier meetings. The MG Unit Trust is expected to list on the ASX in July.
MG managing director Gary Helou said the vote represented a vote of confidence in MG's growth plans.
"The approval of the capital structure gives us the opportunity to raise A$500 million in new capital which we will invest to further our strategic shift towards premium value-add dairy foods and in the process reduce MG's exposure to the volatility of the dairy commodity price cycle.
"Global demand for dairy foods continues to grow, particularly in Asia," he said.
