MURRAY GOULBURN TO PAY $650K SETTLEMENT

LISTED dairy co-op Murray Goulburn (ASX: MGC) has agreed to pay a $650,000 settlement and admitted to breaching its continuous disclosure obligations.

The troubled dairy company says the Australian Securities and Investments Commission (ASIC) will apply to the Federal Court seeking a declaration of one breach under the Corporations Act, with no suggestion of intent.

"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," says Murray Goulburn chairman John Spark.

The breach of obligations arises from 29 February 2016 when Murray Goulburn released announcements to the ASX forecasting average milk price for FY16 of $5.60 per kgms, and a full year profit expectation of $63 million.

ASIC alleges that the milk co-op contravened disclosure obligations by failing to notify the ASX of circumstances on the 22 March 2016, a consequence of which was that Murray Goulburn was unlikely to achieve its forecast profits. Read more

David Simmons - Business News Australia - 16 Nov 2017