Don't ya watch the news Braceface?
The Aussie wheat crop has mostly had no rain for 6 weeks.
Share prices don't fall that much just because it's a bit dry in some parts of the country. We've apparently been in drought conditions for a few years now.....
Graincorp on the spotlight today, rises 16% today. The Foundation Share held by farmers through the Grain Growers Association, gave farmers the majority of seats on the GrainCorp Board plus the right to block any take overs or mergers.
GrainCorp chairman Don Taylor said removal of the share strengthened the company's ability to compete in contestable markets and to capitalise on future opportunities.
GrainCorp Shares Soar After Vote to Remove Grower Control
By Madelene Pearson
Enlarge Image/Details
Feb. 27 (Bloomberg) -- GrainCorp Ltd., eastern Australia's largest grain handler, rose by a record in Sydney trading after shareholders voted to remove the ability of farmers to elect the majority of the board.
The so-called foundation share will be scrapped after a vote at its annual meeting today, Sydney-based GrainCorp said in a statement to the Australian Stock Exchange. The foundation share allowed the Grain Growers Association Ltd. to elect six of the company's 10 board members.
The vote comes two weeks after AWB Ltd., Australia's largest wheat exporter, failed to win support from its grain-grower shareholders to change its dual-share structure.
``Simplifying the company structure is a significant decision for shareholders and will have a positive impact on the future of the company,'' Chairman Don Taylor said today in a separate statement before the vote.
GrainCorp rose as much as A$2, or 18 percent, to A$13.13 on the exchange and traded at A$12.85 at 3:09 p.m. in Sydney. That's its biggest gain since it began trading on the exchange on March 30, 1998.
To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net
Last Updated: February 26, 2008 23:11 EST
Date: 24/7/2008
Author: Geoffrey Newman
Source: The Australian --- Page: 22
Australian rural group GrainCorp will not improve its takeover offer forstockfeed business Ridley Corporation. The announcement by GrainCorp MD MarkIrwin virtually means that the bid has failed, despite the deadline not arrivinguntil 26 August 2008. The recent decline in the predator's share price hasmade the deal unattractive for Ridley's investors. The combined entitywould have a significant share of the silos and feed mills infrastructure onAustralia's eastern seaboard. On 23 July 2008 GrainCorp stock closed at$A8.14, while Ridley's was worth $A1.11 compared with the offer price ofslightly more than $A0.90
Date: 24/7/2008
Author: Sue Mitchell
Source: The Australian Financial Review --- Page: 16
GrainCorp MD, Mark Irwin, admitted that his company's bid for RidleyCorporation may not be successful on 23 July 2008. Irwin said GrainCorpcontinues to value Ridley as a major customer, regardless of the outcome of the$A260 million hostile bid he launched in May 2008. GrainCorp shares have fallen37 per cent since May 2008, reducing the value of the Australian rural servicescompany's bid from around $A415 million to $A260 million. According toIrwin, both Ridley and GrainCorp stand to benefit from "new supply chainefficiencies" available through co-operation
Any holders planning on taking up the GNC SPP in the next couple of weeks? Current price still approx 20% above offer price. ($7.43 current price over $6.25 offer).
Wow that was a crazy match! Opened $1.75 too high! It's like the capital raising didn't even happen...
I was so sure that was a mis print. Back to more reasonable level now.
Isn't the offer price something like $5.65, so a nice profit for existing holders.
All and all a great deal and great move by the management. Still doesn't stop them being a prey in the agri business consolidation game, but probably push the time table back a few months.
Discl. I hold
Hi,
Somewhat inexperienced in all this (and hold approximately 1300 GNC shares) - a few days back they were approximately $9/share now down to about $7.11 9 after UMH acquisitition...
Can someone please explain?
Thanks!
Thanks for the explanation skc, that makes things clearer. I think I'll exercise the right. Much appreciated neighbourino!Howdy Ned,
Don't worry. The market actually loved the acquisition. To fund the acquisition GNC gone to raise more capital from institutions and retail shareholders. As a retail holder you are entitled to "rights" which allow you to buy 9 shares for every 10 shares you hold (so you get to buy ~1170) at a discounted price (I think $5.65). So if you choose to exercise the right. You will make some profit on those new shares based on the current price, and probably no worse off overall.
Not 100% sure what happens if you don't exercise that right. I think GNC will conduct a bookbuild (basically selling the shares that you didn't apply for on your behave) and give you some money back depending on what price they get.
It will all be explained to you in a letter coming from GNC, together with the rights entitlement documentation.
Okilly-dokilly?
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