Keith Cooper
Lambing is being blamed for a slow take-up of Silver Fern
Farms' cash issue.
The offer deadline is Friday, but as of late last week just
15% of the co-operative's approximately 8000 eligible
shareholders had responded.
Of that 15%, 60% had taken up the cash issue entitlement.
Silver Fern Farms (SFF) chief executive Keith Cooper said
many rebate shareholders were in the middle of lambing which
was diverting their attention from paperwork, but he expected
interest to increase this week.
He said it was too early to say how much fresh capital would
be raised, but company executives had earlier said they hoped
for $80 million.
Reminder notices had been sent out which should increase
activity.
Mr Cooper said the response at this stage was consistent with
voting turnouts for SFF's July shareholder meeting, which
changed the constitution and paved the way for the capital
restructuring, and Meat and Wool New Zealand's recent levy
referendum.
Under the offer, shareholders can change rebate and supplier
investment shares for a new class of ordinary shares.
Those who take up the offer are eligible for a cash issue of
two new $1 ordinary shares for each share held, with the
subscription price paid up front or over three years.
Farmers can elect to sell those shares to other farmers or to
any investor on the unlisted trading exchange, but 60% of
voting shares would remain with farmer shareholders.
The money was to be used to repay debt, install new
technology in meat works, roll out its integrated
plate-to-pasture marketing model which linked consumer
requirements with farmer supply, and the launch of its new
consumer meat packs.
Mr Cooper said there was no immediate need for the cash but
it would expedite those investments.
Farmers were positive about the changes, particularly North
Island shareholders who saw it as consolidating two types of
shares in to one, he said.
"It's appeased many suppliers' views that all the benefits
were not limited only to rebate suppliers.
They're prepared to invest provided it is not a narrow window
of benefit for rebate shareholders only."
The changes would also give the co-op flexibility just like
any other corporate, while removing share redemption risk, he
said.
A name, residential address, and (preferably residential) telephone number is required from readers who comment on ODT Online. These details will not be visible to site visitors.