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BRIEF-MG Unit Trust announces decisions of asset and footprint review

Published 02/05/2017, 09:40 am
Updated 02/05/2017, 09:50 am
© Reuters.  BRIEF-MG Unit Trust announces decisions of asset and footprint review
MGC
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May 2 (Reuters) - Mg Unit Trust MGC.AX

* Murray goulburn co-operative co says closure of mg's manufacturing facilities at edith creek, rochester and kiewa

* Murray Goulburn Co-Operative announces decisions of its asset and footprint review which has been undertaken in recent months

* Closures are expected to impact approximately 360 employees

* MG expects closures to deliver an annualised net financial benefit of $40 million to $50 million

* MG expects to spend $60 million of capital expenditure to enable closures

* MG anticipates a net financial benefit in FY18 from closures of approximately $15 million

* MG will write-down assets of $99 million (post tax $69 million) and expects to incur cash restructuring costs of approximately $37 million

* "MG announced today that it will forgive milk supply support package"

* MG says all future repayments of milk supply support package which were to recommence from July 2017 will cease

* MG remains committed to paying a FY17 available average FMP of $4.95 per kilogram milk solids

* MG will record a write-down of $148 million in relation to forgiveness of milk supply support package Source text for Eikon: ID:nASX3qv8 Further company coverage: MGC.AX

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