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Australia: The merger of ABB Grain Ltd, AusBulk Ltd and United Grower Holdings has been finalized following the lodgement of documentation with the Australian Securities and Investments Commission on 27 September, ABB Grain posted on September 27. To facilitate the merger, ABB Grain issued approximately 90.67 million new B-Class shares on 27 September to UGH and AusBulk scheme shareholders (excluding UGH), as part of the two schemes of arrangement.

Chairman of the merged entity, Perry Gunner, said the strong endorsement of shareholders at separate company meetings on September 21 had underscored the strength of support for a new entity in the grain industry that while locally-based 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,” Mr Gunner said.

ABB Grain was now a locally based, export-oriented company extending across the grain supply chain from the farm gate to the end-user and including interests in grain transport, storage, processing and marketing. Reflecting its antecedents ABB had unique expertise in barley marketing, malting and a strong grower focus.

“Being competitive should not just be thought of in terms of the Australian industry but in the context of what is happening internationally,” Mr Gunner said. “As a company with a market capitalisation in excess of one billion dollars based on the recent market share price, ABB Grain will have the critical mass to expand globally and increase the value of the grain which is currently exported. “As an integrated business we will have a better ability to service international end-users and grow shareholder value in the longer term,” Mr Gunner said.

It is expected that trading of the new ABB B-Class shares will start on the Australian Stock Exchange on a deferred settlement basis on Tuesday, September 28. Holding statements for the new ABB B-Class shares will be dispatched on October 5, three days earlier than previously advised.


29 September, 2004