Share simplification

In July 2018, LIC simplified its share structure, bringing together its existing two classes of shares into a single class of shares (Ordinary Shares) which are listed on the NZX Alternative Market (NZAX).

Shareholders approved the move to a single share structure at a special meeting in March 2018. Ministerial approval, required under the Dairy Industry Restructuring Act, was received in April 2018.

Prior to the share simplification, LIC had a dual share structure with two kinds of shares:

  1. Co-operative control shares — compulsory for qualifying farmers.
  2. Investment shares — could only be purchased by holders of co-operative control shares. 

The Board proposed to simplify LIC’s share structure by bringing the two classes of shares together into a single class to:

  • Protect the co-operative principles that are fundamental to LIC
  • Ensure a fairer system that treats all shareholders equally
  • Give LIC capital flexibility to respond to inevitable future challenges and opportunities
  • Support LIC’s strategy (Vision, Purpose,Strategic Themes and Values)
  • Deliver a simpler share structure with less hassle for shareholders and LIC

Share simplification graphic scales

More information