Turners and Growers shareholders have approved the spin-off of its car auction subsidiary.
Turners Auctions Ltd will be separated from the original fruit and vegetable side of the business through a one in five share buyback.
The scheme, approved at a special shareholders' meeting on Friday, involves the company buying back 5
million Turners and Growers shares and issuing a proportionate percentage of Turners Auctions shares.
Subject to High Court approval, Turners Auctions would trade independently on the unlisted securities market in early May.
Turner's Auctions was cited as one of the main drivers behind Turners and Growers' after-tax net surplus of $3.72 million for its half year to December.
Net revenues and commissions for the six months grew to $108 million, from $95.224 million the previous year.
Turners & Growers is 45 per cent owned by Guinness Peat Group and 26 per cent owned by Bartel Holdings Ltd.
GPG shares traded down 2c to $1.93 in mid-afternoon trading.
- NZPA
