CBH proposal a step closer

WA GRAIN handler Cooperative Bulk Handling has been given the green light to present its corporate restructure proposal to growers at a shareholder meeting on September 29.

CBH lodged its restructure documentation with the Supreme Court in July and had the release to shareholders authorised by Justice Owen on August 7.

The WA Government has already passed legislation allowing the grain handler to leave State control.

However, for the repeal of the Bulk Handling Act, CBH’s restructure plan must receive 75 per cent shareholder approval.

A booklet containing information on the restructure will be presented to CBH shareholders by the end of August.

CBH is proposing a similar restructure to that conducted by the Australian Wheat Board.

Its growers will be given ‘A’-class shares which will give them control over how CBH is run. These shares will not be tradeable.

‘A’-class share issues will depend on the amount of grain the grower puts through CBH.

‘B’-class shares will be given to growers only. They can opt to trade them on the Australian Stock Exchange when CBH is listed.

CBH deputy chairman Tony Critch said CBH was pursuing corporatisation in order to meet growing competition.

Several large Eastern States’ grain handlers are looking west for some drought proofing. Large international grain traders such as Cargill could also start to court WA growers.

“The Bulk Handling Act gives us some pretty nasty constraints,” Mr Critch said.

“For example, we can’t desegregate prices. If a competitor started offering better prices to growers in an area, we could not match them.”