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 co-operatives.
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 share/cash split.
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 to shareholders.
''It makes a lot of sense and we're pleased these plans have been endorsed by the shareholders of both organisations,'' they said.
The establishment board and management would ''move quickly'' to ensure merger gains were captured on behalf of shareholders, Mr Johnstone said.
