CANBERRA: Murray Goulburn will proceed with its A$500 million ($400 million) public listing after members of the cooperative voted to approve the move on Friday, Australia’s largest dairy producer said.
“The strength of today’s vote demonstrates that (Murray Goulburn) shareholders see the growth that lies ahead for dairy foods,” said Philip Tracy, chairman of the Murray Goulburn, which accounts for nearly half of dairy output in the world’s No.4 producer. Over 90 percent of members voted for the plan.
Murray Goulburn would keep its co-operative structure but would allow external investors to buy non-voting shares via a unit trust listed on the Australian Securities Exchange.
The fund-raising will test investor appetite for a sector that expects strong long-term growth as Asia develops a taste for dairy products, but which has been battling prices near six-year lows due to Russian import bans and as Europe deregulates its milk industry.
Murray Goulburn is betting it can capitalise on Asian demand for high-value dairy beverages and cheese products.
“Global demand for dairy foods continues to grow, particularly in Asia. All global dairy companies are racing to capture a share of these growth opportunities and in this context, (Murray Goulburn) does not have a moment to waste,” said Gary Helou, the firm’s managing director.
But some investors are concerned the structure of the unit listing will pit investor interests against those of farmers, who have been promised higher farmgate prices.
