MURRAY Goulburn last week successfully completed the implementation of its new capital structure, with the listing of the MG Unit Trust (ASX code MGC) on the Australian Securities Exchange (ASX).
MG has now raised $500 million to fund capital investments as part of its growth and value creation strategy to sustainably maximise farm-gate milk prices and future earnings.
The MG Unit Trust will contribute approximately $438 million though the issue of units, with more than $62 million raised through the issue of shares to suppliers under the Supplier Share Offer and the Supplier Priority Offer.
The new units and shares have commenced trading on a conditional and deferred settlement basis.
MG chairman, Philip Tracy, said the listing of the MG Unit Trust marks the beginning of a new era for MG.
“It follows a two year journey to develop and implement the capital structure.
“The initial public offering attracted interest from a diverse range of high quality institutional and retail investors, and we are delighted to welcome in excess of 6000 new investors to share in MG’s future success.”
MG managing director, Gary Helou, said the move has been well received.
“Over the last month I have had the opportunity to meet with dozens of institutional investors and brokers to discuss MG’s vision to become a first choice dairy foods company with global reach.
“It is fantastic that so many investors share our enthusiasm for creating value by furthering MG’s strategic shift towards premium value-add dairy foods and reducing our exposure to the volatility of the dairy commodity price cycle.
“Importantly, the capital structure strongly aligns the interests of our supplier shareholders and MG Unit Trust investors.
“As we move forward we will be working hard to deliver for all our stakeholders.
“While today’s successful listing is a historic day in the 65 year history of MG, we now, importantly, have the capital to invest in key projects to deliver world leading manufacturing and supply chain capabilities to better connect with domestic and international customers.
“Over the coming months we will move with speed to activate the planned capital projects – a key driver behind MG’s growth and value creation strategy to support sustainably higher farmgate milk prices and returns for MG shareholders and MG Unit Trust unitholders,” Mr Helou said.