The IPO of MG Unit Trust, a wholly-owned subsidiary
of Australian dairy co-operative Murray Goulburn, has expanded
fundraising options for agribusinesses.
MG Unit Trust, which listed on the Australian
Securities Exchange (ASX) on July 3, allows investors to
receive returns from Murray Goulburn’s dairy
business without breaking its co-operative model; it is owned
by its suppliers, or dairy farmers.
It follows the 2012 New Zealand IPO of the Fonterra Shareholders’ Unit, the
listing of that country’s largest dairy
co-operative. Fonterra was the first to use a structure in
which outside investors could receive economic benefits but not
The MG Unit Trust IPO has improved upon that structure. A
key point of the transaction involved the alignment of
interests between investors coming in through the trust and the
farmers in Murray Goulburn, said Tim McEwen, partner at Herbert
Smith Freehills in Melbourne, who acted for the...