CBH is a valuable business, though the valuation will ultimately be determined by the market at the time of listing.
An Independent Expert Report will be commissioned to provide members with an assessment of whether the Proposal is in the best interests of growers.
Through this proposal, each member will receive a combination of cash and shares which will be tradeable after sharemarket listing. Calculating the value of the cash and shares each individual CBH member will receive from the Australian Grains Champion Proposal is dependent on a number of factors:
- Average tonnes delivered by the grower to CBH over the past five years
- The number of co-operative shares/memberships owned by the Grower
- The valuation of CBH set by investors seeking to purchase Australian Grains Champion shares on the ASX
- Total CBH shares/memberships issued and total tonnages handled by CBH the past five years
Due to restrictions on providing valuation forecasts, the IPO will determine the value of CBH.
The table below is provided for illustrative purposes to provide an indication of the amount of cash and the number of Australian Grains Champion shares that may be paid and issued to CBH members in consideration for the acquisition of their shares in CBH.
For example, under this illustration a CBH member with 1 membership share who has delivered an average of 2,500 tonnes of grain per annum would receive cash of $130,000 and 215,000 Australian Grains Champion shares for the acquisition of their CBH share.
A calculator is available to use your own tonnage and estimated value of CBH on listing to provide some guidance on the value of your new AGC shares together with the value of cash you will receive.
IMPORTANT NOTE: If the Proposal is approved by growers, the financial outcome for individual growers on a successful Initial Public Offering (IPO) will depend on the average tonnages delivered by growers over the past 5 years and the listing price of the issued shares on a successful Initial Public Offering. The number of shares in the table is based on one billion shares being issued.