09/10/2008 - 10:44

New plan for Great Southern restructure

09/10/2008 - 10:44

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Perth-based agricultural investment manager Great Southern Ltd has unveiled its revised restructure plans after a falling share price forced it to go back to the drawing board.

Perth-based agricultural investment manager Great Southern Ltd has unveiled its revised restructure plans after a falling share price forced it to go back to the drawing board.

In August, Great Southern proposed a major restructure plan following a strategic review which found the company needed to take advantage of existing strategic assets, including the large forestry land estate.

The centerpiece of the proposal was for the company to buy-out the interests of managed investment scheme (MIS) investors in eight projects in exchange for Great Southern shares.

The proposal was expected to net the company some $438 million through the issue of shares at $1.10 each.

However a falling share price from about $1.10 when the proposal was announced to the last traded price of 53c had prompted concern from MIS investors.

As a result, Great Southern said today investors will receive shares at a 5-day trading volume weighted average price (VWAP), starting eight days before the investor vote.

The company added that the number of shares issued will vary on the VWAP price, but will be capped at $1 and have a floor price of 50 cents.

Under the original offer, the pro-forma net tangible asset per share stood at $1.46, however due to the revised offer, if the minimum number of shares offered if the VWAP price is at around $1, the NTA dips to $1.41 per share.

Great Southern said under the revised plan, project investors can receive up to a 71 per cent shareholding in the company at the floor VWAP price.

The proposal is subject to the approval of both relevant project investors and Great Southern shareholders.

Following a successful review of the proposal by the independent directors for each of the projects and independent expert KPMG, a schedule for a shareholder meeting will be issued.

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