Australia's largest dairy group, Murray Goulburn Co-operative, has released the indicative price range for units in a new trust that will allow non-dairy-farmers to invest in the group.
Murray Goulburn said on Friday that the indicative price range under the initial public offer had been set at $2.10 to $3.20 per unit.
The final price will be announced on July 3.
Murray Goulburn is aiming to raise about $500 million in new capital by July 2015.
The establishment of the MG Unit Trust will not alter the co-operative nature of Murray Goulburn.
Farmers will retain 100 per cent control, and unitholders will not have voting rights or any control over the strategic and operational decisions of Murray Goulburn.
Unitholders in the trust will be eligible to receive annual and half-yearly distributions which will be equivalent to dividends paid to Murray Goulburn's shareholders.
Murray Goulburn said the trust is forecasting a distribution of 17 cents per unit to be paid to unitholders in the 2016 financial year.
Achieving this forecast is subject to changes in global dairy commodity prices, exchange rate fluctuations and other risks.
"The formation of the MG Unit Trust is central to our new capital structure and will allow Murray Goulburn to complete planned investments in world-leading manufacturing capability and achieve increased market reach, managing director Gary Helou said.
"In turn, this will further our strategic shift towards premium value-added dairy foods and reduce Murray Goulburn's exposure to the volatility of the dairy commodity price cycle."
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