Aiming to save on insurance

By Country News

Murray Goulburn Co-operative 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.