AWB today announced that GrainCorp Limited’s intention to acquire up to 23 million AWB B class shares from existing B class shareholders was a vote of confidence in AWB.
GrainCorp is offering to acquire the shares at a price of $2.60 per share, which is equivalent to the net asset value of AWB at 30 September 2000 and compares with an estimated net asset value of $2.85 at 31 March 2001.
AWB Chairman, Mr Trevor Flügge, stated that the offer demonstrates Graincorp’s strong confidence in AWB’s board and management and illustrates its faith in the ongoing strength of AWB’s commercial operations and strategic direction.
“While the Graincorp offer gives shareholders an opportunity to dispose of their shares at $2.60, this needs to be balanced against the potential sale proceeds that could be achieved once AWB is listed on the Australian Stock Exchange,” said Mr Flugge.
“As previously advised to shareholders, AWB intends to list its B class shares on the Australian Stock Exchange in August of this year.
“The listing will be structured so as to promote liquidity in the market in order to enable shareholders to freely trade their shares at a fair value,” said Mr Flugge.
The Directors can give no assurance as to the price at which the B class shares will trade when AWB is listed. Shareholders are therefore advised to seek their own advice as to the fairness of Graincorp’s offer and whether or not they should accept the offer.
“While the Directors make no recommendation as to whether or not shareholders should accept the offer, none of the Directors intend to accept the offer in respect of their own personal shareholdings,” said Mr Flugge.
For more information contact:
Peter McBride, AWB Limited, Public Affairs on 03 9209 2174 or 0417 662 451 or Paul Ryan, AWB Limited, Public Affairs on 03 9209 2098 or 0408 347 282