UPDATE 1-Australia AWB share structure plan approved

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MELBOURNE, Sept 3 (Reuters) - AWB Ltd (AWB.AX) shareholders on Wednesday approved a plan to simplify the Australian wheat exporter's share structure, which the company said would help it raise capital on cheaper terms on global markets.

The vote to scrap the group's A-class shares, mostly owned by farmers, carried with 77 percent of shareholders voting in favour, just over the three-quarters support needed, AWB Chairman Brendan Stewart told shareholders at a meeting.

The vote follows the opening of the Australian wheat export market to competition from July 1, after AWB was stripped of export monopoly following an inquiry which found it had made illicit payments to Iraq's former government of Saddam Hussein to win sales.

AWB twice failed earlier this year to go ahead with the plan, as it did not get enough support from its A-class shareholders.

The A shares are restricted to wheat growers and give the power to elect a majority of the board, but are not eligible for dividends. Publicly traded B class general shareholders receive dividends but can only elect a minority of the board.

AWB had wanted to end the dual class structure because it said it restricted its ability to raise capital on favourable terms and could hamper its ability to compete with multinational companies, including global commodities trader Cargill Inc [CARG.UL], for the now-deregulated Australian exports.

The B-class shares rose 2.4 percent to close at A$2.97 after the vote.

The simpler share structure could also make it easier for AWB to take part in a widely expected industry consolidation in Australia, potentially involving ABB Grain Ltd (ABB.AX), Futuris Corp FCL.AX, or GrainCorp Ltd (GNC.AX), among others. ($1=A$1.20) (Reporting by Sonali Paul)