AGRIBUSINESS investor Great Southern has altered a restructure program, saying market volatility and the company's lower share price prompted the change. 

Great Southern said the restructure would improve liquidity by exchanging relatively illiquid investment in a managed investment scheme for shares that could be readily traded.

Improved investment diversification would also potentially increase the returns that project investors may otherwise receive, it said.

Great Southern managing director Cameron Rhodes said the proposals, if approved, would transform Great Southern.
"The proposed transactions will, if all successful, bring together the company's key asset - high-value agricultural land - with the tree and cattle assets of investors in selected forestry and cattle managed investment scheme projects," Mr Rhodes said.

"The company will become an integrated forestry business and have additional revenue and cash flows from both forestry and cattle to complement our existing tax effective MIS (managed investment scheme) business," he said.

"We believe this revised offer provides significantly more certainty that the restructure will be completed and that the benefits of the restructure will be realised."

In August, Great Southern said it would restructure to create a company with three business streams: forestry, agricultural investment services and cattle.

Under the original restructure, investors in eight Great Southern pulpwood and cattle managed investment projects were to exchange their interests for new shares to be issued in the company.

Great Southern had proposed to issue 398.4 million shares, representing about 55 per cent of the issued capital of the restructured company, at $1.10 each.

Great Southern said today that rather than receive a fixed number of shares, project investors would receive shares based on the prevailing market price, subject to the floor and ceiling.

"As a result of the volatility in global markets and Great Southern's lower share price since the original proposal was announced and feedback received from project investors, Great Southern has revised its offer to project investors," the company said.

Under the revised offer, project investors will be offered Great Southern shares at a five-trading-day, volume-weighted average price (VWAP), starting eight trading days prior to the project investor vote.

An investor vote is expected in late November or early December.

The number of shares to be issued will vary based on the VWAP price, but will be subject to a floor price of 50 cents and a ceiling price of $1.00.

Under the revised restructure plan, up to 71 per cent of Great Southern's total shareholding will be offered to project investors.

At lower share prices, project investors would also receive more shares. At the floor price, investors would receive nearly twice as many Great Southern shares as compared to the original offer.

Great Southern shares were 0.5 cents higher at 53.5 cents today.

AAP