October 5, 2009

AWB Limited on Oct. 2 said it is offering shareholders an opportunity to buy more shares in the company.

In a letter to shareholders, AWB chairman Peter Polson said one-for-one non-renounceable entitlement offer of new shares in AWB Limited at an issue price of A$1 (US$0.87) per share. For every AWB share owned, participants will have the opportunity to buy one new AWB share at the new price.

Polson said the retail offer is part of A$459 million equity raising announced by AWB on Sept. 23 2009. Approximately A$120 million was raised from existing institutional shareholders and a further A$100 million was raised through a placement to new institutional investors. He said the A$1 issue price represents a 30.8 percent discount to the closing price of AWB shares on Sept. 22 -the last trading day before the equity raising was announced.

Polson added that the issue price of A$1 per share is the same price paid by institutional shareholders.

In the letter, Polson also stated that "AWB is well positioned to take advantage of the Australian agricultural sector's performance through its extensive Landmark rural network, strategically located and geographically diverse Australian infrastructure assets and strong relationships with growers and customers developed over 60 years." The proceeds from the equity raising will be used to strengthen AWB's balance sheet and provide financial flexibility through debt reduction, he said, and will leave AWB sufficiently capitalized to take advantage of strategic opportunities in the agricultural sector going forward.

US$1 = A$1.14 (Oct 5)