Shareholders will be able to reinvest dividend

Livestock Improvement is to introduce a dividend reinvestment plan.

Under the plan, shareholders would have the choice of continuing to receive their dividends in cash or credit, or using them to buy additional shares in the animal breeding company.

It said the scheme was aimed at improving the liquidity of shares while giving shareholders the chance to boost their holdings without incurring brokerage costs.

Livestock Improvement chairman Stuart Bay said the plan would be based on the on-market acquisition of existing shares and new shares would not be issued.

"... Livestock Improvement has a strong balance sheet and is unlikely to need additional equity in the foreseeable future, so the plan will acquire shares on the market."

A special shareholders' meeting will be held at the company's head office in Hamilton on April 5 to vote on the proposal.

Approval is also needed from the Ministry of Agriculture, the Securities Commission and the stock exchange.

Livestock Improvement hopes the plan will be in place for its July dividends.