Historic dairy processor Murray Goulburn has confirmed it will keep aside $235 million after its assets are sold to Saputo to deal with potential costs from a class action lawsuit, operating costs and costs associated with winding up the processor.
Murray Goulburn says farmers and unitholders will get a first payment of 80 cents a share from the sale of the operation to Saputo.
Photo: Rob Homer
The figure is revealed in a 132 page document sent to shareholders on Wednesday that provides a comprehensive summation of the proposed deal with Saputo, when shareholders will be paid and a strong recommendation from MG’s board that shareholders back the sale.
The “Explanatory Memorandum” from MG says that of the $235 million figure, $195 million will be kept in relation to “retained litigation”, a reference to a class action lawsuit against Murray Goulburn, proceedings launched by the Australian Competition and Consumer Commission and an Australian Securities and Investments Commission investigation.
Given MG has paid a penalty of $650,000 in respect of the ASIC investigation, and the ACCC has said it is not seeking a pecuniary penalty against MG, it seems the bulk of the $195 million figure is being kept to deal with potential costs relating to the class action.