And Canadian agribusiness giant Viterra has received the greenlight to take control of ABB Grain after shareholders yesterday voted in favour of the merger at a meeting in Adelaide.
ABB told the ASX after the meeting that the scheme of arrangement meeting in Adelaide voted 60.4% in favour of the deal, with 83.5% of the total number of votes cast for the proposal.
The 15% shareholding cap was also removed – effectively allowing the takeover to proceed.
ABB chairman, Perry Gunner told the meeting in an address in which he urged them to support the merger:
"If the Scheme is implemented, the Combined Group will have substantial assets in the primary grain exporting markets of Australia and Canada, creating one of the world’s largest exporters of wheat, barley and canola.
"We believe that having access to the quality production from these two regions will enhance the Combined Group’s ability to serve customers in high growth import markets.
"The Combined Group will be better positioned to compete in the global agri-business industry, creating additional value for its Shareholders and customers," Mr Gunner said.
"ABB Grain will attend a hearing of the Federal Court on 10 September 2009 to request that the court approve the scheme.
"If approval is granted, the Scheme of Arrangement is scheduled to be implemented on 23 September 2009," ABB said yesterday in the statement after the vote was known.
Viterra will then be able to buy 100% of ABB for $1.6 billion.
The Canadian company needed a majority of ABB Grain shareholders – 50% plus one – to vote for the deal, together with at least 75% of the total number of votes cast.
Shareholders were offered $4.35 a share in cash, plus a 41-cent-a-share ABB Grain special dividend, as well as 0.4531 Viterra shares or Viterra CDIs for each ABB Grain share.
ABB shares were placed in a trading halt on the Australian Securities Exchange while the meeting was held, with shares last traded yesterday morning at $9.08. The shares relisted and rose 13 cents to $9.13.
