Aim­ing to save on in­sur­ance

Shepparton News - Country News - - DAIRY -

Mur­ray Goul­burn Co­op­er­a­tive is propos­ing to delist the MG Unit Trust to save money on in­sur­ance pre­mi­ums.

The com­pany an­nounced prior to Christ­mas that it would be seek­ing ap­proval from the unit hold­ers for the delist­ing.

Com­pany staff have been work­ing on the cost struc­ture of the on­go­ing com­pany and they have de­ter­mined that in­sur­ance pre­mi­ums could be sig­nif­i­cantly re­duced by the delist­ing.

‘‘MG’s in­quiries have in­di­cated that on­go­ing an­nual in­sur­ance pre­mi­ums and the fi­nal in­sur­ance pre­mium for run-off in­sur­ance when MG is even­tu­ally wound up (fol­low­ing the con­clu­sion of the Re­tained Lit­i­ga­tion) would be ex­pected to be sig­nif­i­cantly lower if the MG Unit Trust is delisted from ASX,’’ the com­pany an­nounced.

The ac­tual cost sav­ings will re­main un­cer­tain un­til an­nual in­surances are placed with in­sur­ers for the pe­riod start­ing April 1, 2019, and, in the case of run-off in­sur­ance, un­til MG is wound up.

The delist­ing of MG Unit Trust is sub­ject to ASX con­sul­ta­tion.

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