AWB Limited shareholders can now access extra cash through a new margin lending finance facility launched today.
The financial product allows growers to borrow against the value of their B class shares, and is managed by one of Australia’s largest and most reputable margin lending companies, Leveraged Equities Limited.
AWB Limited Chief Executive Andrew Lindberg said many growers, particularly those affected by recent poor seasonal conditions, would welcome the opportunity to access extra funds without having to sell their AWB shares.
Mr Lindberg said AWB shareholders throughout Australia had recently been approached with an offer to sell their shares to securities dealer, Country Estate Pty Ltd.
“None of the directors of AWB Limited would sell their shares at the price offered by Country Estate, and we have urged growers to hold on to their shares until AWB is a listed company and the true value of our B class shares is realised,” said Mr Lindberg.
“However, it became very clear to us that some growers were in a difficult financial position, particularly those in areas that experienced floods or droughts. This new product allows growers to access up to 50 per cent of the value of their B class shares, while still retaining ownership of those shares,” Mr Lindberg said.
The minimum loan is $10,000. Shareholders can borrow 50 per cent of the value their AWB shares, currently valued at $2.60 on a Net Tangible Asset (NTA) basis. However, shareholders can use the margin lending facility to borrow funds against the value of an entire investment portfolio if they do not have sufficient AWB B class shares.
Leverage Equities will lend shareholders up to 70 per cent of the value of any listed shares. When AWB B class shares are listed on the Australian Stock Exchange, shareholders can access 70 per cent of the value of these shares. Shareholders will receive a competitive interest rate of 9.2 per cent.
Shareholders should contact Leverage Equities on 1300 307 807 for further information.
For further information contact:
Jo O’Connell in AWB Public Affairs on (03) 9209 2555 or 0407 310 250.