TasAg to distribute cash, shares

By Phil Boeyen, ShareChat Business News Editor

Friday 21st September 2001

Tasman Agriculture (NZSE: TAS) shareholders will receive up to $1.24 in cash plus shares in the company's Australian subsidiary under a proposed restructuring plan.

TasAg is intending to place the company into voluntary solvent liquidation and make an interim cash distribution of between $75 and $82 million to shareholders, representing between $1.12 and $1.22 per share.

The company says depending on the level of interim distribution it will also undertake a final cash distribution of between $1million and $6 million or between 2 and 9 cents a share, bringing the total payout to between $1.21 and $1.24 for each share.

All the share capital in the company's 100%-owned Australian subsidiary, Leander Holdings, will also be distributed.

Shareholders will be asked to approved the deal at the company's AGM in Dunedin late next month with the interim cash payment and Leander shares to be distributed in November.

If approved TasAg shares will cease trading on the NZSE but the company will seek to have the Leander shares quoted on the secondary board.

Founding shareholder and chairman, Howard Paterson, says the company's farm sales programme has resulted in significant surplus capital which the board believes is best given back to shareholders.

"We also believe the immediate outlook for dairying in Australia is positive and feel it is important that TasAg shareholders have the opportunity to retain an exposure to the Australian operation."

"For that reason we have ensured that the Restructuring Proposal allows shareholders to receive a direct share in the Australian operation in proportion to their existing TasAg shareholding".

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