PGA asks for CBH vote

The Pastoralists and Graziers Association has renewed its attack on the CBH board over a stalled bid to corporatise the co-operative.

PGA grains committee chairman Gary McGill said the CBH board should allow grower members a vote on the corporatisation proposal from Australian Grains Champion.

“CBH has long prided itself on the basis that it is controlled by its grower members,” he said.

“It was growers who voted on accepting the grain pool merge and who voted 16 years ago against corporatisation.

“Yet in the case of the AGC proposal, the CBH board is of the opinion that in some circumstances growers should no longer be in control of their co-operative.”

The release of Patersons Securities research showing CBH would command a stock market value of at least $2.56 billion has reignited debate on the AGC proposal.

The proposal, backed by GrainCorp and First State Super, offers growers cash of up to $1 billion as well as shares in a company listed on the Australian Securities Exchange.

Based on the Patersons’ valuation, a grower delivering 2500 tonnes of grains year to CBH would get $131,429 in cash and shares worth $429,111.

Even if it was put to a vote, the proposal appears highly unlikely to get the 75 per cent majority needed to set the corporatisation process in motion.

A number of growers have contactedWestBusiness to question the merit of the proposal and the taxation consequences.

It is understood AGC would ask for a blanket ruling on capital gains tax rollover relief if the proposal went forward.

Mr McGill said it was up to all growers to decide the merit of the AGC plan through a vote.