Update on share simplification proposal

Market statement 19 April 2018 Update on share simplification proposal On 14 March 2018, Livestock Improvement Corporation (NZX:LIC) (LIC) shareholders voted strongly in support of the proposal to simplify LIC's share structure by bringing its existing two classes of shares together into a single class. Since then, the Minister of Agriculture has given consent to the changes to the constitution of LIC required to implement the proposal. A small number of shareholders elected to exercise their minority buy-out rights arising from the proposal under the Companies Act 1993 (Act).* LIC today confirmed it will buy-back 1,334,396 investment shares as a result of the shareholders exercising their rights. LIC considers the fair and reasonable price to buy-back the investment shares, determined in accordance with the Act, is $4.00 per share, being the same as the implementation price under the proposal and within the assessed value range for investment shares determined by Northington Partners in its report to shareholders on the proposal. However, there are objection rights available to those shareholders who have exercised their rights under the Act. In accordance with the Act, the legal title to those investment shares will pass to LIC today. LIC intends to retain all investment shares concerned as treasury stock. ENDS For any shareholder enquiries please phone 0800 264 632 * Sections 110 and 118 of the Companies Act 1993 grant minority buy-out rights to any shareholder who votes all of their shares against a special resolution that affects the rights attaching to shares (if the resolution is approved). Minority buy-out rights essentially require LIC to purchase, or to arrange the purchase of, the shares held by the shareholder exercising those rights. LIC's share simplification proposal was approved by a special resolution and, because the simplification proposal affected the rights attaching to LIC shares, shareholders who voted all their shares against the proposal were entitled to exercise their minority buy-out rights within 10 business days of the passing of the resolution. End CA:00316933 For:LIC Type:GENERAL Time:2018-04-19 09:03:04