Western Australian Farmers Federation calls for AWB - No Vote:
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CONTROL VALUE OF AWB A-CLASS (GROWER) SHARES COULD BE WORTH IN EXCESS OF $100,000,000.
The right to control a company has value, and, in the case of an Australian Securities Exchange Top 200 company, this value is considerable, and in the instance of AWB, is estimated to be worth in excess of $100,000,000 by way of a control premium.
AWB is seeking to convince grower shareholders to give up the value of control for nothing. The cost to AWB B-Class shareholders to gain control will only amount to the cost of the company’s aggressive publicity campaign.
If growers are going to give up control, then they should be adequately rewarded for that loss of control. This should be achieved by negotiating a cash value for their right to control.
The Board of AWB realises that the dual-class shareholding does constrain the company in terms of takeover value and is therefore attempting to consolidate control to a single class of shareholder at minimum cost to the company and its B-Class Shareholders.
WAFarmers members who are AWB A-Class (grower) Shareholders and have not yet voted at AWB’s adjourned Extraordinary General Meeting, now have another opportunity to have their say.
By voting, these members have the opportunity to capture the real value of their A-Class shares.
A-Class (grower) Shareholders who have already voted, need do nothing. A-Class (grower) shareholders have the right to elect the majority of Directors to the Board of AWB Ltd. This bestows the right of control in theoretical terms to growers shareholders.
A-Class (grower) Shareholders should oppose this opportunistic control grab and ensure they ultimately get the real value for their A-Class shares by voting AGAINST the resolution to remove Article 2 from the Constitution.
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All articles on the battle for control of AWB.
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