GrainCorp in $100m issue

GrainCorp has confirmed plans for a $100 million issue of reset preference shares to finance its takeover of Queensland-based Grainco. The shares will have a fixed dividend of 6.5 per cent, which is expected to be fully franked.
GrainCorp won support in June from Grainco's directors for its $104.75 million offer, but needs to convince 75 per cent of its shareholders by the time of a mid-August general meeting. They have been offered the choice between cash at $1.39 per share, or the equivalent in $100 reset preference shares. Its preference is that the shareholders join the GrainCorp register.
A GrainCorp spokesman said yesterday that Grainco's mostly farmer shareholders are concerned they get adequate grain-handling services.
The issue to Grainco shareholders will close on August 22 and the public offer on September 8.