A bonus issue of $32 million in shares is being made to CRT
and Farmlands shareholders to distribute the retained
earnings and unallocated reserves of the rural supply
The two co-operatives, which officially merged last Friday,
will also distribute more than $8 million in an interim bonus
rebate to shareholders. The rebate will be paid in a 60/40
Both CRT and Farmlands shareholders agreed to merge at a
second special vote last week, creating a nationwide farm
supplies co-operative with 54,000 members throughout New
Zealand, more than 1000 staff, 47 stores in the North Island,
31 in the South Island and combined historic sales of $2
billion a year.
In a joint statement, Farmlands chairman Lachie Johnstone,
who will chair the establishment board of the merged entity,
and CRT chairman Don McFarlane said they were very pleased
with the outcome.
''The boards and management of both companies both worked
hard to formulate and evaluate the proposal before it was put
''It makes a lot of sense and we're pleased these plans have
been endorsed by the shareholders of both organisations,''
The establishment board and management would ''move quickly''
to ensure merger gains were captured on behalf of
shareholders, Mr Johnstone said.