We’re doing a lot of work at the moment to transform LIC to make it into a sustainable business for the next 50 years. To do this we need to make sure LIC is in the best shape it can be.
Share class structure
We’ve heard your views on the current share class structure. The current share structure is unsustainable, and the disparity that occurs between the two classes of LIC shares will only get worse. The board is assessing a fairer way of dealing with all shareholder interests. We’ll come back to you in the first half of 2017 to present options and get your feedback.
We’ve also heard your views on the LIC goal statement in our Strategy, and the board has agreed to remove the current Goal. We are yet to develop a new Goal or statement of purpose, and will work with the Shareholder Council on this.
Over the past few years, we’ve heard many of you say we should stick to our core business. We will be ring fencing our core business of genetics in the co-operative and forming an agritech company to allow us to pursue opportunities for growth. External funding will not flow into our genetics business, but the separation creates an opportunity to attract external investors and potentially commercial partners to the agritech business, with shareholder approval.
We’ve heard your concerns around MINDA and Herd Testing, and can confirm that post-separation both will remain with the co-operative. MINDA will be owned by the co-operative but operated by the agritech company.
LIC - Our Journey