Murray Goulburn eyes Fonterra-style partial float

27 November 2013

Australia’s Murray Goulburn Co-operative Ltd, locked in a three-way takeover battle for fellow dairy company Warrnambool Cheese and Butter Factory Co , said it was planning a partial share float to diversify its access to funds.

Murray Goulburn, Australia’s top dairy producer, was considering a model similar to that of New Zealand dairy giant Fonterra Co-operative Group , which maintains farmer-control while tapping additional capital from external investors via a non-voting unit trust.

The plan was the result of a year-long review of its capital structure and was unrelated to its A$505 million ($467 million) Warrnambool bid, which is funded by debt, Murray Goulburn said on Friday.

“The co-operative structure is at the heart of our success and we want to reassure all supplier shareholders that we are not proposing any change to it,” Chairman Phil Tracy said in a statement.

Read full article, Australia’s Murray Goulburn eyes Fonterra-style partial float, Yahoo! News, 22 Nov