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
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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
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