Cropping

MG agree to deal with ASIC over price clawback

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November 16, 2017

Dairy processor Murray Goulburn have agreed to a settlement with the Australian Securities and Investments Commission (ASIC) in relation to ASIC’s investigation into Murray Goulburn’s involvement in milk-price crisis.

The settlement is subject to Federal Court approval and ASIC will apply to the Federal Court seeking Murray Goulburn admit their wrongdoings as well as asking for a civil penalty of $650 000, which the co-operative is expected to agree to.

The settlement is over Murray Goulburn’s April 2016 announcement that they could not achieve $5.60/kg of milk solids and instead offered suppliers between $4.75 to $5.00/kg MS.

It is not alleged by ASIC that Murray Goulburn deliberately contravened its continuous disclosure obligations.

Murray Goulburn chairman John Spark welcomed the conclusion of ASIC’s investigation.

‘‘Murray Goulburn takes its disclosure obligations very seriously and has co-operated fully with ASIC during its investigation of these matters,’’ Mr Sparks said.

‘‘We consider that this settlement is in the best interests of Murray Goulburn as we continue to focus on our objective of supporting our farmer suppliers, including through the proposed Saputo sale process.’’

The matter is due to come before the Federal Court shortly for the court’s approval of the settlement.

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