AWB Limited announced today that it would be writing to all AWB B Class shareholders this week to inform them that no AWB Limited Directors would accept GrainCorp’s offer of $2.60 per B class share.
AWB Chairman, Trevor Flugge, stated today that we have an obligation to write to all our B class shareholders to inform them of the Directors’ opinion in relation to GrainCorp’s offer.
“AWB strongly refutes the claim by GrainCorp, in their media release today, which stated that AWB supports GrainCorp’s investment in AWB,” said Mr Flugge.
“Any suggestion by GrainCorp that their bid of $2.60 per B class share is supported by AWB is absolutely wrong.
“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 AWB B class shareholdings.
“As well as writing to our 68,000 B class shareholders on this issue, we will also be running full page adverts in the major state farming newspapers this week stating AWB’s view of GrainCorp’s offer,” said Mr Flugge.
GrainCorp Limited announced last week that it intended to acquire up to 23 million AWB B class shares from existing B class shareholders.
GrainCorp is offering to acquire the shares at a price of $2.60 per share, which is equivalent to the net tangible asset backing of AWB at 30 September 2000.
The estimated net tangible asset backing at 31 March however, had reached $2.85.
“As previously advised to shareholders, AWB intends to list its B class shares on the Australian Stock Exchange in August of this year,” said Mr Flugge.
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.
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