Ballance Agri-Nutrients' share price has been increased by 50 cents to $7.50, after shareholders agreed to the increase at the co-operative's annual meeting in Napier last night.
This is the first increase in four years, boosting the equity allocated to shareholders by $16.2 million.
Chairman David Graham said the Board's
recommendation to shareholders was based mostly on the strong financial position of the Ballance Group following a record-breaking year.
"The outlook for farming looks sound and the value of $7.50 is supported by our present and projected earnings," Mr Graham told shareholders.
In July, Ballance announced it would return nearly 60 percent of its profits for the 2010/2011 financial year to shareholders through a record rebate and dividend payment of $50.29 per tonne. This followed an $85.9 million trading result - four times greater than the $20.7 million earned in the previous year.
"We have been through a couple of volatile years where an amendment to the share price has not been proposed," Mr Graham said.
"The lift in nominal value also recognises the capital our longer serving shareholders have contributed, and ensures that new shareholders contribute to the capital base."
Shareholders also agreed to reduce the number of elected directors from eight to six, increase the number of appointed directors from two to three and to reduce the number of Ballance wards from four to three. The South Island remains as one ward and the North Island will be divided into two, each ward with two elected directors. Eighty eight percent voted in favour of the changes, well over the 75 percent required to pass the resolution.
Mr Graham said the board wanted to set the co-operative up for the future by further expanding the Board's expertise.
"Farmers will continue to have a majority voice when making decisions about our co-operative but this move also strengthens the benefit of external directors, who bring different commercial skill sets and experiences to the table. We are pleased to have shareholders' support for this change.
The constitution provides for a transition period through to 2013 to put the changes into place.
