Tuesday, 25 October 2016 18:25

LIC plays safe on new business split

Written by 
LIC chairman Murray King. LIC chairman Murray King.

LIC has bowed to shareholder pressure by dropping its plan to transfer its herd testing and Minda businesses to a subsidiary.

The co-op will split its business into two on December 1: LIC will handle its core business while LIC Agritech will seek external capital to grow and boost shareholder returns.

LIC shareholders had expressed reservations about transferring herd testing and Minda to a company that could one day be publicly listed.

LIC chairman Murray King told its annual meeting last week that the process on the separation “has given us the opportunity to hear what you value about LIC”.

“We’ve heard your concerns about Minda and herd testing, and can confirm that after the [business] separation both will remain with the cooperative. Minda will be owned by the co-op but operated by the agritech company.”

He said forming an agritech company allows LIC to pursue opportunities for growth, with the potential to attract external investment and generate returns for investors.

“External funding will not flow into our core genetics business, but the separation creates an opportunity to attract external investors and potentially commercial partners to the agritech business, with shareholder approval.”

LIC has also listened to shareholders and dropped its goal to be a $1 billion revenue co-op.

“We are yet to develop a new goal or statement of purpose, and will work with the shareholder council on this,” Murray told shareholders.

A motion to increase the allowance of LIC directors was passed with a narrow margin at the annual meeting. LIC told the stock exchange that 405 shareholders cast 361,566 votes in favour, while 459 shareholders cast 292,982 against. – Sudesh Kissun

More like this

LIC, Afimilk tie up with collar deal

Herd improvement and agri-tech cooperative LIC has formed a distribution partnership with Israeli-based Afimilk to market its hi-tech cow collars in New Zealand.

Featured

New apple proves to be hot item

The first apple to be commercially released from the Hot Climate Programme is receiving rave reviews from growers in Italy, France and the UK, according to horticultural company T&G.

 

Wool group raises $500k

A new group established to revise the fortunes of New Zealand’s struggling strong wool sector says it has already raised more than $500,000 and is starting to roll out its work programme.

Bring on the blueberries!

While Hew Dalrymple was beginning his journey with broccoli, brother Roger became involved in a state-of-the-art blueberry growing operation, which sees the fruit grown in hydroponic pots in huge tunnel houses.

National

Expat workers ready for NZ

Dairy industry recruitment company Rural People Limited is seeing a huge increase in overseas interest to fill New Zealand farming…

Machinery & Products

Kubota ROPS tractors here

Kubota New Zealand product specialist Shaun Monteith says Rollover Protective Structure (ROPS) tractors make up 30% of all tractors in…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Dung paint

India now has its own cow dung paint, a world-first. 

Fresh for 60 days

A Queensland-based company is set to release its own production of milk this year that stays fresh for at least…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter