AWB Seeks to Split Company

SYDNEY - Nov 28/06 - SNS -- The Australian wheat marketing board, AWB Limited, is seeking shareholder approval to split the company into separate companies -– a wholly grower owned Single Desk manager, and a purely commercial agri-business company.

The compay asserts the proposed change is consistent with the following six key principles proposed by the grains industry for any changes to Australia’s Single Desk wheat marketing arrangements:

1. Separating the ownership of the Single Desk franchise from the commercial service provider

2. Wheat grower ownership and control of the Single Desk franchise

3. The highest levels of governance and transparency

4. Maximisation of net returns to National Pool participants

5. Security of payment to National Pool participants; and

6. Contestable service arrangements to the National Pool

Under the proposal, AWB International will be a grower-owned company that manages the Single Desk wheat marketing arrangements. The key functions of AWB International in managing the National Pool will be to:

- Manage sole export licence and bulk veto

- Provide the buyer of last resort facility

- Manage integrated services contracts

- Report on single desk performance

- Inform and represent industry

- Support industry development

AWB Limited will continue to be an ASX listed company. It will be owned and controlled by shareholders. In addition to other commercial activities, the key functions of AWB Limited in providing services to the National Pool will be:

- Pool operations

- Treasury

- Price risk management

- Sales execution and marketing

- Supply chain – chartering

- Support services