Tuesday, 25 October 2016 18:25

LIC plays safe on new business split

Written by 
LIC chairman Murray King. LIC chairman Murray King.

LIC has bowed to shareholder pressure by dropping its plan to transfer its herd testing and Minda businesses to a subsidiary.

The co-op will split its business into two on December 1: LIC will handle its core business while LIC Agritech will seek external capital to grow and boost shareholder returns.

LIC shareholders had expressed reservations about transferring herd testing and Minda to a company that could one day be publicly listed.

LIC chairman Murray King told its annual meeting last week that the process on the separation “has given us the opportunity to hear what you value about LIC”.

“We’ve heard your concerns about Minda and herd testing, and can confirm that after the [business] separation both will remain with the cooperative. Minda will be owned by the co-op but operated by the agritech company.”

He said forming an agritech company allows LIC to pursue opportunities for growth, with the potential to attract external investment and generate returns for investors.

“External funding will not flow into our core genetics business, but the separation creates an opportunity to attract external investors and potentially commercial partners to the agritech business, with shareholder approval.”

LIC has also listened to shareholders and dropped its goal to be a $1 billion revenue co-op.

“We are yet to develop a new goal or statement of purpose, and will work with the shareholder council on this,” Murray told shareholders.

A motion to increase the allowance of LIC directors was passed with a narrow margin at the annual meeting. LIC told the stock exchange that 405 shareholders cast 361,566 votes in favour, while 459 shareholders cast 292,982 against. – Sudesh Kissun

More like this

Genetics focus boosts herd

A strong focus on genetics and DNA has paid dividends for Fernside dairy farmer Julie Bradshaw with four of her cows being selected for the LIC breeding programme.

Getting better with training

This calving season will be a little different for dairy farmer Jo Forsyth thanks to a recent MINDA LIVE training session that marked somewhat of a ‘turning point’ in her confidence and utilisation of the technology.

LIC set to deliver strong dividend

LIC has announced its financial result for the 2021-22 year, driven by increased farmer spend on premium genetics and herd improvement services.


Genetics focus boosts herd

A strong focus on genetics and DNA has paid dividends for Fernside dairy farmer Julie Bradshaw with four of her…

Machinery & Products

A baler like no other

While baler-wrapper combinations have become the backbone of baled silage production, one machine stands out from the rest in the…

Small bales in demand

While round or large square bales have the dominant shares in the rural landscape, small square bales still play an…

Amazone's one-pass operation

Ag machinery maker Amazone has paired up its Precea precision air seeder and Combi-Disc 3000 compact disc harrow to deliver…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

$1m remains unpaid

OPINION: A group of New Zealand farmers who collectively sold $1 million worth of cattle to a live export company…

Too close for comfort

OPINION: One vet believes the threat of foot-and-mouth entering New Zealand is much higher than what authorities tell the public.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter