Media release: February 13, 2013
Farmlands CRT merger one step closer
The boards of CRT and Farmlands, recommending a merger of their societies, have attracted overwhelming shareholder
support to take the process to its next stage.
The CRT shareholder meeting in Christchurch on Tuesday completed the first of two shareholder votes required to approve
a merger with those in favour accounting for 85.5% of the vote, exceeding the threshold of 75% of votes necessary to
proceed.
CRT chairman Don McFarlane said he was very pleased with the outcome.
“The boards and management of both societies have put considerable effort into the formulation and evaluation of the
proposal before it was put to shareholders. We thought it made sense, our independent advisors agreed, and now the plans
have been endorsed by the shareholders of both organisations,” he said.
Mr McFarlane said the result meant that less than three percent of the total shareholder base had voted against the
proposal. This amounted to a strong mandate to proceed.
“It’s a busy time of year for farmers. Shareholder feedback at our eighteen road show meetings was valuable. Many
shareholders were busy with harvest and other activities and just wanted the co-ops to get on with the merger because it
made sense,” he said.
The merged entity will have 54,000 members throughout New Zealand, more than 1,000 staff, 47 farm supplies stores in the
North Island and 31 in the South Island, with combined historic sales in excess of $2 billion a year.
A business plan for the merger identified potential net synergy benefits amounting to $18 million from the third year
onwards.
Mr McFarlane said that, subject to a confirmatory vote by shareholders on February 27, a merger would proceed on March
1, 2013, beginning a process of unlocking benefits to Shareholders.
ENDS