Of the votes received 70.30% of shares voted against the proposal, 27.56% voted for it and 2.14% abstained.
For the investment to proceed it had to be approved by 50% or more of the votes received.
As a result LIC’s board said the $108.7 million acquisition will not proceed.
LIC chairman Murray King said “Ultimately, an investment of this nature needs shareholder endorsement.
“The market and economic volatility seen since late February saw shareholder uncertainty and nervousness about embarking on an acquisition increase through the voting period.”
No one could have foreseen the rapid impact of covid-19 that resulted in material impacts on the acquisition.
They included exchange rate volatility, difficulty in efficient transfer of governance and risk of earnings impact for the Afimilk business.
King said the proposal was a significant but achievable long-term strategic investment opportunity.
Its board and management did due diligence before recommending the investment because it made strong commercial sense financially and strategically.
“It is vital that LIC keeps its world-leading edge in pastoral dairy farming data while broadening access to new information to meet future needs and challenges.
“We are in a rapidly transforming industry and to protect against disruption we will need to continue to find opportunities to protect LIC’s on-going access to pastoral dairy farming data through the increased use of in-line milk meters and animal monitoring systems.”
King said LIC’s immediate focus is to ensure it remains fit to play its role supporting shareholders as they navigate their farming businesses through the challenges of the next few months.
