WEST PERTH, AUSTRALIA — The CBH Group can confirm that it has received correspondence from Australian Grains Champion (AGC) retracting its demand for exclusivity and an approximate A$16 million ($11,935,149) break fee as part of its proposed process agreement.
GrainCorp, CBH’s publically owned cousin operating the largest eastern Australian grain storage network, announced on Feb. 17 it had joined a consortium that is proposing privatization of CBH Group and listing the 83-year-old cooperative on the Australian Stock Exchange.
The proposal, which is backed by GrainCorp and H.R.L. Morrison, offers growers a cash payment and shares in a corporatized CBH. AGC presented the proposal to the board of CBH with a request that it be put to CBH’s grower members.
CBH had requested further information on Feb. 24 to enable it to fully assess whether the proposal is in the best interests of Western Australian grower members. But on Feb. 26 CBH received a letter from AGC declining to provide further information on its proposal to corporatize CBH.
CBH said the proposed changes to the process agreement do not alter the fundamental concerns it previously outlined.
The CBH Group board said it remains committed to a comprehensive assessment of the proposal with the support of its legal and financial advisors and will take this amendment into account as part of that process.
AGC hopes that CBH will enter into a process agreement by March 18.