AUSTRALIA – GrainCorp has announced several leadership changes to its board and executive roles following the proposal to demerge its Malt business.
On condition that the demerger proceeds, Graham Bradley AM will be appointed as Chairman of the Malt business (“MaltCo”).
Peter Richards has been appointed as Deputy Chairman of GrainCorp with immediate effect and he will assume the role of Chairman of GrainCorp.
To enhance a more strategic focus on the business, GrainCorp is planning to demerge its global malting business to form a new division, MaltCo.
This will result in the formation of two separate businesses: one focused on malting business and a stand-alone Australian grains business.
The new GrainCorp will entirely operate in grains, oilseeds, pulses, edible oils and feeds while MaltCo will be a global malting and craft brewing distribution business.
As part of the business review, Mark Palmquist, chief executive officer of GrainCorp will become managing director and CEO of MaltCo.
GrainCorp has also commenced an international search for a successor to Mark Palmquist as Managing Director & CEO of the company following Mr Palmquist’s future appointment to MaltCo.
“The search is canvassing external and internal candidates and follows the decision of GrainCorp’s Chief Operating Officer Klaus Pamminger to remain in the COO role post-demerger and focus on successful delivery of the substantial opportunities identified through the integration of Grains and Oils.
“As GrainCorp announced on 4 April 2019, the demerger is expected to be implemented by way of a scheme of arrangement, subject to shareholder, GrainCorp Board, Court and regulatory approvals,” said GrainCorp.
The demerger is expected to be implemented by way of a scheme of arrangement subject to shareholder, GrainCorp board and court and regulatory approval.
The company recently entered into a 10-year agreement to manage the risk associated with the volatility of eastern Australian winter grain production.
This expected to reduce cash flow volatility, particularly during periods of severe drought.