There are fees attached to this transaction which will be payable to advisers and investors. Fees are a commercial reality in business. The fees have been negotiated at commercial rates and benchmarked to market.
Details of the fees will be available to members if/when the Scheme Documentation is released.
One of the key group of advisers is the team and founders that make up Australian Grains Champion.
Australian Grains Champion has spent the past 15 months developing this Proposal and expects to commit another 6-10 months to take it through to a grower vote.
Under the Proposal the existing shareholders, directors and advisers to Australian Grains Champion will retain a shareholding in the company to the value of $12 million as compensation for their work and for the seed funding and other money that has been spent so CBH members can consider the Proposal.
Thirty per cent of these shares will be escrowed for 12 months to further align its interest with growers.
This value is only received if CBH members approve the Proposal and get the $600,000,000 cash and their shares.
External advisers are paid fees in the context of transactions such as an initial public offering. Any external adviser fees would be fully disclosed as part of the documentation prepared in association with the potential listing.