FOR IMMEDIATE RELEASE
CHIS recommends to sellCHIS - June 02, 2005 - The Board of the Consolidated Herd Improvement Services Co-operative Limited (CHIS) board has unanimously recommended the sale of the business to one of Australia’s leading herd improvement companies, ABS Australia. CHIS members will now vote on a special resolution authorising management to proceed with the sale of the Kyabram based co-operative, which has struggled to remain financially viable. CHIS Chief Executive Officer, Shane McCarrey said the offer from ABS Australia delivered the best result to members. "It is no secret that CHIS has struggled to remain financially viable for many years," he said. "Having investigated all available options, and after seeking independent legal and financial advice, we are pleased to accept the very strong proposal from ABS Australia which will greatly benefit our shareholders, customers and staff." "Importantly, the ABS Australia proposal outlines a clear vision for herd improvement in this region, ensuring dairy farmers of the Central and Northern districts of Victoria will continue to access quality products and service." ABS Australia General Manager, Steve Fried said the move to acquire CHIS further strengthened the company’s presence in the Australian market. "ABS Australia considers it an honour to have the opportunity to link in with the strong customer base of CHIS," he said. "We have had many discussions with the CHIS Board and management over the past months and outlined a strategy for development of the industry, through research and development which we feel is important." "We are confident the business has an excellent future in the region, and we intend to ensure it continues to improve." The CHIS Board will be conducting a number of information sessions over the next week. Members are asked to refer to their special resolution pack for session details. Based in Albury, NSW, ABS Australia is a subsidiary of Genus plc, the largest supplier of bovine genetics and related reproductive products in the world. For further information please contact Stephen Fried on 02 6026 2226, or sfried@absglobal.com
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